Apple reportedly cuts iPhone production by 30% as stocks pile up

Whether the latest rumors about iPhone 6s will prove to be right or wrong will be known later this month when Apple reports their holiday sales quarter on January 26, 2016. Downscaled production is only expected to last through March as dealers sell through their current stock, with orders returning to normal during the April-June quarter after Apple’s inventory adjustment has been completed.

In a sign that Apple’s days of printing its own tax-free money are over after people decided not to buy its iPhone 6s.

“This is an eye-opening production cut which speaks to the softer demand that Apple has seen with 6s out of the gate”, said Daniel Ives, senior analyst at FBR Capital Markets.

The cut will be equal to a 30% drop in production for the models that are affected.

“I don’t see any competitive issues as Apple is gaining or maintaining market share and the macro-economic conditions haven’t significantly changed, either”, Moorhead told us.

Apple also has plans on increasing the battery capacity of iPhone 7 Plus by 13 percent to 3100mAh, which is more than the existing 2750mAh battery in its predecessors.

Reports of slowing shipments and mounting inventories of the iPhone 6S and 6S Plus, as well as tepid forecasts from suppliers, have pushed Apple investors into unfamiliar territory after years of booming sales and surging shares.

Wall Street has additionally checked its perspective on the highflying stock in recent months.

Since early December, about one-third of analysts tracked by Thomson Reuters have trimmed their estimates for Apple.

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

The tech company is expected to release the iPhone 7 with an A10 chipset inside the phone later this year.