Report: Apple to Cut iPhone 7 Production by 10 Percent

...

Continuing supply problems and relatively weak demand for the iPhone 7 will lead Apple to cut its production, the Nikkei Asian Review reported Friday.

Citing data from Apple's suppliers, Nikkei estimated that production of Apple's flagship mobile device would decrease 10 percent in the first quarter of 2017 compared to the same period a year earlier.

When Apple released its latest earnings report in October, CEO Tim Cook addressed the supply and demand issues, which he said were interrelated. The drop in demand was mostly a result of a shift in Chinese consumers' buying habits: people in China were quick to upgrade to the iPhone 6s, a surge that was much larger than the demand increase following the iPhone 5s, and not something that Apple was able to replicate with the iPhone 7.

Why the drop in Chinese upgraders? Cook cited several factors, including a challenging foreign exchange rate environment that has resulted in manufacturing supply shortages. Indeed, Nikkei reported that a shortage of camera sensors has curbed Apple's ability to meet demand for the iPhone 7, which has two rear cameras in addition to the front shooter.

A production cut signals that Apple isn't immune to the forces that have been shaping the broader smartphone market in 2016. Several analysts predicted that overall smartphone growth would slow this year, with Gartner speculating that the era of double-digit growth is over.

But Strategy Analytics reported that smartphone makers around the world peddled 375.4 million units in the third quarter of 2016, up from 354.2 million units a year earlier. It was the industry's fastest growth rate for a year, and the firm expected a higher growth rate for the rest of 2016 than originally forecast.

Categories
APPLICATIONS
0 Comment

Leave a Reply

Captcha image


RELATED BY

  • 5300c769af79e

    Providing Secure Connected Products

    Download Security is a primary concern of ThingWorx customers - especially device manufacturers and end-customers that deliver and use connected products.These customers demand a proven solution that protects them and their customers against hackers, malware and unsafe operations.
  • 5300c769af79e

    Cortana Web Searches Restricted to Edge, Bing in Windows 10

    According to Microsoft General Manager Ryan Gavin, "we have seen some software programs circumvent the design of Windows 10 and redirect you to search providers that were not designed to work with Cortana.The result is a compromised experience that is less reliable and predictable.
  • 5300c769af79e

    Moto Z DROID Review

    I took on the Moto Z, which you’ll find out all about below, while Tim has the Moto Z Force.There aren’t many differences between the Moto Z and the Moto Z Force, but one of the big ones lies within the camera department.
  • 5300c769af79e

    IoT Revenue May Reach $357 Billion By 2018

    Internet of Things revenue is expected to soar 16.In the years leading up to 2019, IDC says it expects IoT revenue is expected to climb to $357 billion.