Apple might cut iPhone 6s production by up to 30% this quarter


Is iPhone growth starting to stall?
Photo: Apple

Apple will be allegedly reducing orders of the iPhone 6s and iPhone 6s Plus to suppliers by as much as 30 percent this quarter. iPhone 6s and 6s Plus sales are apparently considerably less than that of the iPhone 6 and iPhone 6 Plus in the year-ago quarter. If this is true, it seems that Apple has been making too much supply for simply not enough demand.

“Inventories of the two models launched last September have piled up at retailers in markets ranging from China and Japan to Europe and the U.S. amid lackluster sales,” according to the report from Nikkei Asian Review“Customers saw little improvement in performance over the previous generation, while dollar appreciation led to sharp price hikes in emerging markets.”

This isn’t confirmed knowledge just yet, only a report of the expectation that Apple will soon cut back on outputs. The original plan was to produce around the same amount of units as the iPhone 6 and iPhone 6 Plus for this time last year, but instead with less production, retailers have more opportunity to burn through the units they already have in stock. Suppliers, meanwhile, are left to suffer.

The only way we’ll know for sure is when Apple eventually releases its first quarter (calendar year) earnings to reveal the number of iPhone 6s units shipped and/or sold, which won’t be for another few months. The iPhone has been like a jetpack for Apple over the last several years and it would certainly be the end of an era if growth finally began to stall. And Wall Street would lose it big time.

Deals of the Day

  • Gregg_Thurman

    Classic simpleton speculation. Without knowing December quarter (FQ1/2016) results, it is impossible to forecast how much seasonal decline there will be in iPhones.

    Since March quarter 2012 unit sales have declined QoQ for both the March and June quarter, averaging a 15% drop in the March quarter, and a further 21% decline in the June quarter. Importantly June quarter results have averaged a 36% decline over December quarter results.

    Given that Apple maintains 5 – 7 weeks channel inventory, about half of any quarter’s production is for the following quarter’s requirements. Nikkei Asian Review’s alarmist claim that iPhone production will drop 30% is well within historical declines, and is nothing to get in a twit about. It might actually be good news (if true).

  • pjs_boston

    Apple always cuts production after the Christmas quarter. Wall Street is working overtime on the Apple pump ‘n dump treadmill this year.

  • Gigi

    Io proporrei di tagliare radicalmente i prezzi se vogliono ancora vendere i loro iPhone