Apple shares tumble on report of iPhone output cut

According to a new report, this year’s iPhone 7 Plus will come packing the biggest battery we’ve seen in an iPhone to date, and up to 256GB of internal storage.

It’s worth pointing out that Apple actually reduced the size of the battery from the iPhone 6 Plus to the iPhone 6s Plus (the former packed a 2,915mAh unit). £340) for the current 8GB iPhone 5C.

The iPhone cuts could spell trouble for Apple chip suppliers such as Avago Technologies (NASDAQ:AVGO), NXP Semiconductors (NASDAQ:NXPI) and Skyworks Solutions (NASDAQ:SWKS). Originally Apple had told parts suppliers to keep production levels equal to those of the iPhone 6 and 6 Plus.

Sales of Apple iPhones may be slowing, leading to excess capacity and some lay-offs at its key component suppliers, according to reports, which also hit the shares of suppliers including chipmaker ARM Holdings.

This latest rumour comes from the Chinese website MyDrivers which MacRumors notes to have a “mixed track record” when it comes to reporting Apple’s new and upcoming products.

“Since the iPhone 5 launched on Sept. 21, 2012, all proceeding models have launched around that same late-September period”, A new report from the Apple Insider said, as quoted by the source above.

FBR Capital Markets analyst Daniel Ives called the cut “eye-opening”. Yet, an analyst at Moor Insights & Strategy, Patrick Moorhead, said he was somewhat doubtful regarding the creation reduction reports.

In recent weeks, Wall Street analysts have also tempered their views on the high-flying stock.

Normally, Apple is expected, for financial 2016, to grow sales by a far cry from the 28% sales growth it achieved, under 4%.

Customers gather outside an Apple store before the release of iPhone 5 in Munich early September 21, 2012.