Apple reportedly scaling back iPhone production
Company said to be cutting iPhone 6S and 6S Plus production by up to 30%
Apple is set to scale back the production of its current-gen iPhone models as resellers around the world struggle with high inventories, according to a report from the Nikkei business daily.
The Nikkei said that Apple is expected to cut production of the iPhone 6S and iPhone 6S Plus by as much as 30% for the first quarter of 2016, allowing resellers to sell off their current stock. The report is the latest in a string of rumours that Cupertino is struggling to maintain the sales growth numbers it normally enjoys with new-generation iPhones.
Already, investors have taken note, with some worrying that Apple is too dependent on its iPhone business. Shares have slipped by around a quarter since a high in April.
The news has also hit Apple's component manufacturers, with Japan Display and LG Display also seeing their share prices drop.
That said, the Nikkei reported that Apple is expected to bring its production back up to speed for the following quarter. Reuters reported that Apple is expected to see a 4% revenue growth for the fiscal year of 2016 - much lower than the 28% growth the company recorded for its previous fiscal year.