Apple is cutting production of the iphone by around ten percent in the first quarter of 2017, believes Nikkei Asian Review. Using data from analysts and examining supply chain orders, the daily Japanese publication believes slower than expected sales of Apple’s latest smartphone will lead to a reduction of output during the next three months.
This isn’t the first time that apple has scaled lower back manufacturing on its flagship handsets. The remaining year saw the iPhone 6s and iPhone 6s plus production scaled again in the first area of the year due to an abundance of gadgets in the delivery chain from over-estimated Q4 income.
At that point the popularity of the iPhone SE turned into also in query so it made experience to hold the delivery chain as lean as possible so any staggering SE income could not bring about stock lying round unsold – apple maintains to bias in the direction of ‘simply in time’ manufacturing to lessen the slack between production and selling a handset.
Apple also cut again at the production numbers of the iphone 7 and iphone 7 plus for the initial availability of the new handsets. In element, this will be all the way down to deliver boundaries for the dual-lens digicam components for the iPhone 7 plus, but demand for the iphone 7 turned into gradual at fine.
While the sales of the new handsets remain strong, they are not as strong as in previous years. As smartphones iterate themselves closer to a standard feature set, as the hardware gains that can be made each year become less of a technological jump over previous handsets and as some changes look to be more in favour of a manufacturers bottom line compared to user accessibility (see the courageous dropping of the 3.5mm headphone jack not he iPhone 7), consumer momentum to keep upgrading to the new handset lessens.You can also read our previous article regarding iPhone7