Menu
Apple expected to cut parts procurement on slow iPhone sales

Apple expected to cut parts procurement on slow iPhone sales

Japanese newspaper says suppliers are bracing for cut in orders

Asian electronic component makers are expecting Apple to cut procurement orders by about 30 percent in the current quarter due to weaker-than-expected sales of the new iPhone 6S and 6S Plus, according to a Japanese media report.

The Nikkei newspaper said Apple had originally asked its suppliers to keep first quarter production at normal January-March levels, but inventory of the new phones has backed up in retail stores and Apple is cutting production.

Apple could not be reached for comment and typically does not comment on media reports.

The cut is expected to be temporary, with production resuming at normal levels in the April to June quarter, the newspaper said.

If correct, the move could hit a large number of companies in Japan, South Korea and China that supply most of the parts that go into the iPhone. Some are well-known names, such as Sharp, LG and Sony.

The iPhone 6S and 6S Plus brought through a number of improvements over previous models, but as is typical with Apple's "S" model iPhones, many of the improvements were evolutionary and not revolutionary.

While sales might be down, the phone remains the most popular smartphone on the market, easily outselling competing handsets from the likes of Samsung, LG, Motorola, Sony and Huawei.

IPhone 6S launch in Palo Alto Martyn Williams

New iPhones lined up for sale at Apple's Palo Alto store on Sept. 25, 2015.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags Apple

Featured

Slideshows

Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Show Comments