Apple Inc is expected to cut production of its latest iPhone models by about 30 percent in the January-March quarter due to mounting inventories
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As inventories of the iPhone 6s and 6s Plus have piled up since they were launched last September, production will be scaled back to let dealers go through their current stock, the business daily reported. (s.nikkei1R9rxvj)
The report prompted a 2.5 percent drop in Apple shares, which have lost about a quarter of their value from record highs in April, reflecting worries over slowing shipments. Shares in the mainly Asian makers of the iPhones' screens and chips were also sharply lower on Wednesday.
"This is an eye-opening production cut which speaks to the softer demand that Apple has seen with 6s out of the gates
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Apple was not immediately available for comment but some Taiwanese suppliers pointed to falling sales, a rare holiday break and a government subsidy as evidence of the gloomy outlook.
"The slowing down of the market is the truth," one Taiwanese supplier said, requesting anonymity because they did not comment on specific clients or confidential agreements.
