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Apple to reduce iPhone production in early 2017

Published: 31/12/2016 by Comments

Apple to reduce iPhone production in early 2017

The first quarter of 2017 will see Apple cut back on iPhone production by around 10% as reported by Nikkei calculations from supplier data.

The first quarter of 2016 saw a 30% decrease in output due to excess of inventory, according to Nikkei reports.

Sales data for Apple in 2016 show fewer iPhone sales than prior years to date, from its first introduction to the market.

In discussion with Nikkei a supplier of parts for iPhone said that the reduction in output was “within expectations” explaining that suppliers for Apple are scaling down their reliance on the California company.

Reduced production is thought to affect purely Apple’s iPhone7 (4.7-inch) instead of the larger version iPhone 7 Plus.  The model is in more demand, which Apple has faced challenges meeting due to the intricacy of manufacturing its two-lens camera.

A forecast which was sent to clients in November 2016, by KGI Securities analyst Ming-Chi Kuo, predicts that production figures may actually reduce over the first two quarters of 2017 and not only the first.

“We forecast total shipment volume of iPhones will decline YoY in 1H17 due to weak demand in China, slow shipment volume of 4.7-inch iPhones in 1Q17, and the lack of a new iPhone SE in 2Q17”

It is the expected reduction in Apple iPhone 7 sales in 2017 that are creating speculation that the company are working on a strategy launch for a new model of iPhone, to be released into the market in September 2017.  The new addition to Apple’s iPhone range is thought to boast wireless charging, a new and improved screen quality and impressive glass design.

Midday trading figures saw Apple shares down under 1%.

 

Photo credit: Freepik


Colette Lamb
News article by:
Colette Lamb

A business sector writer with over 15 years of experience working in the marketing, commerce and law sectors' internationally and in the UK. Interests include composing music and other creative communications such as art and dance therapy.



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