Apple said to scale down orders for iPhones

Some iPhone component makers had idle capacity in the last two months

Apple's component suppliers are bracing for cuts in sales as the iPhone maker has apparently pared down its orders for the phones.

Problems for Chinese iPhone factories were seen in the final two months of last year, when they had some surprisingly idle capacity, at a time when they would have been usually rushing to meet orders from Apple, reported the Wall Street Journal on Tuesday.

Apple, which usually intimates its projections of its requirements to makers in advance, has cut its order forecasts to iPhone suppliers in the past several months, WSJ said, quoting three people familiar with the company’s supply chain.

Apple has decided to trim production in the current quarter because of a pile up of inventory of the iPhone 6s and 6s Plus with retailers in markets including China, the U.S., Europe and Japan, according to the Nikkei business daily.

"I think we're more than likely experiencing some supply chain hiccups and component vendor switching," said Patrick Moorhead, president and principal analyst at Moor Insights & Strategy. "I do not believe we are seeing issues with Apple's competitive standing, and that's what matters."

Even Foxconn, a key Apple supplier, appears to have been affected and some workers at its Zhengzhou factory in China were sent on early holiday in December, ahead of the usual new-year holiday season in February, WSJ said, citing a person involved in the supply.

Apple is expected to reduce production of its latest iPhone 6s and 6s Plus models by about 30 percent in the first quarter, although it had initially told component makers to keep production of these models for the quarter at the same level as for the earlier versions iPhone 6 and 6 Plus a year earlier, Nikkei reported. Production is expected to return to normal by the second quarter, it added.

The Cupertino, California, company shipped 48 million phones in the third quarter for a 13.5 percent market share, up from 11.8 percent in the same quarter a year earlier, according to IDC. Most of the smartphone demand and growth is, however, expected to come from low to mid-range handsets, particularly in emerging markets, the research firm said.

Apple could not be immediately reached for comment.

Join the PC World newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?