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 US, Europe and Japan, according to the Nikkei business daily.
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% 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% market share, up from 11.8% 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.
IDG News Service
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