Apple cuts iPhone production amid fears of slowing demand – Tech giant Apple’s share price plummeted amid reports production of the latest iPhone is set to be cut by 30 percent.
The Cupertino-based firm is planning to reduce its iPhone production by around a third amid fears of slowing demand. The company will cut production of the latest iPhone 6s and 6s Plus models by 30 percent during the first three months of 2016, according to Nikkei Asian Review report.
The report claims that the two new models have “piled up” at retailers across the US, Europe, Japan and China, although older, less expensive units have continued to sell. The report comes amid predictions from some market analysts that the company will announce its first ever fall in iPhone sales at the end of the month.
The iPhone 6s and 6s Plus were launched in September last year, with Apple reporting sales of over thirteen million units within 3 days of availability, boosted by the smartphone going on sale in China at launch for the first time.
According to analysts at FBR Capital Markets, Apple is expected to sell some 220 million iPhones during 2016, which it describes as a “commendable achievement” for an “s” iPhone cycle, with under-the-skin updates rather than major cosmetic changes.
Market analysts have been foretelling the decline of iPhone sales in the wake of increasing market saturation in developed nations. Apple has turned its attention to the profitable China market, where sales of iPhones have grown 65 percent year-on-year.