Apple is reportedly cutting iPhone 7 and iPhone 7 Plus orders less than three months after their debut due to falling demand.
Momentum has fallen “significantly” in China and other markets, according to sources in Apple’s supply chain, and component makers are already shifting their focus to iPhone 8.
Apple is said to be cutting its iPhone orders ahead of another weak quarter to prevent a build up of inventory. The move means it will likely miss Wall Street estimates again, but analysts expect over a year of growth after iPhone 7.
Apple has told iPhone suppliers in China to cut iPhone 5c orders for the fourth quarter following lower than expected demand for the device, The Wall Street Journal reports. Foxconn has been asked to cut orders by one-third, while Pegatron will reduce its shipments by 20%, sources claim.
Apple has reportedly stopped placing Mac component orders after overestimating demand and placing “aggressive” orders at the end of 2012. DigiTimes reports that suppliers haven’t received any information from the Cupertino company to indicate when orders may resume.
Earlier this week, The Wall Street Journal reported that Apple has cut its iPhone 5 component orders by as much as half following “weaker-than-expected” demand for device. The news sent Apple’s stock price plummeting, but according to some analysts, there’s nothing to worry about. iPhone 5 demand is doing just fine, according to Sterne Agee’s Shaw Wu, and the component cuts are in no way related to poor demand.
