Sharp Leads Apple Suppliers Lower on IPhone Output Cut Report

Apple is reportedly planning to cut production of its iPhone 6s models by around 30% in the January to March quarter compared to original production plans for the quarter, reports Nikkei.

The Nikkei report triggered concerns about slowing shipments of the iPhone 6s and iPhone 6s Plus handsets; thereby causing Apple’s shared to plunge by almost 2.5 percent.

Sharp dropped 4.1% as of 10:21am in Tokyo and Japan Display Inc. slumped 3.2%.

Apple, which usually intimates its projections of its requirements to makers in advance, has cut its order forecasts to iPhone suppliers in the past several months, WSJ said, quoting three people familiar with the company’s supply chain.

“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.

About Making Comments on our Site: Patently Apple reserves the right to post, dismiss or edit any comments. Interestingly, the source of today’s report says that it’s likely that Apple will sell a pair of Lightning-equipped EarPod headphones separately from the iPhone 7.

Wall Street has also tempered its view on the high-flying stock in recent months. Since early December, their estimates have been cut by about a third of the analysts monitored by Thomson Reuters.

For fiscal 2016, Apple is now expected, on average, to grow revenue by under 4 percent, a far cry from the 28 percent revenue expansion it achieved in the fiscal year that ended last September. It already started in that area of its business with the rollout of the Apple Pay mobile payment system to China, its iPhone Upgrade installment program and the launch of its Apple Music subscription streaming service.

Apple is set to scale back production of its iPhone 6s and iPhone 6s Plus, with suppliers claiming that stock is piling up as demand for the devices slows.