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 newsletter!

Or
Error: Please check your email address.

Tags Apple

Featured

Slideshows

Bumper channel crowd kicks off first After Hours of 2018

Bumper channel crowd kicks off first After Hours of 2018

After Hours made a welcome return to the channel social calendar with a bumper crowd of partners, distributors and vendors descending on The Jefferson in Auckland to kick-start 2018. Photos by Gino Demeer.

Bumper channel crowd kicks off first After Hours of 2018
Looking back at the top 15 M&A deals in NZ during 2017

Looking back at the top 15 M&A deals in NZ during 2017

In 2017, merger and acquisitions fever reached new heights in New Zealand, with a host of big name deals dominating the headlines. Reseller News recaps the most important transactions of the Kiwi channel during the past 12 months.

Looking back at the top 15 M&A deals in NZ during 2017
Kiwi channel closes 2017 with After Hours

Kiwi channel closes 2017 with After Hours

The channel in New Zealand came together to celebrate the close of 2017, as the final After Hours played out in front of a bumper Auckland crowd.

Kiwi channel closes 2017 with After Hours
Show Comments