Apple will slash down production of its recent launches — iPhone 7 and iPhone 7 Plus in the first quarter of 2017. The reason for the production trim being accumulated inventory for the phones due to its slower than expected sales. The reports were first published by Japanese newspaper, Nikkei Asian Review, which stated Cupertino will curb production by 10 percent based upon data provided by its suppliers.
Previously, Apple had cut down its production for iPhone 6 and iPhone 6S by 30% due to the unsold stock. This continues for the iPhone 7 as it witnesses less demand, though the iPhone 7 Plus remains comparatively popular. The larger iPhone 7 Plus features two rear cameras which holds its credibility over iPhone 7. However, the shortage of camera sensors for the Plus model affects the company’s ability to meet the user’s demand.
Apple fans had expected phones to be equipped with unique features but lack of any such differential features lead to its overall sluggish sales. Further, in anticipation of Samsung’s downfall due to bursting Galaxy Note 7s, the company had boosted up production for iPhone 7 but the fiasco didn’t pay off much. Hence, increasing inventory for the phone leads to slicing down production by 10%. The surveys report that not more than 50% of existing users intend to upgrade to the latest model — though they might due to drastic changes.
Apple Pay and contactless IC Chip compatibility enhanced the iPhone 7 sales in Japan and now holds nearly 10% of the global market. Though, the company holds massive popularity in the region, it is unable to bear the burden of lacking sales. IDC, an international research company commented on issue as,
All signs point to 2016 being the first full year of declining shipments for Apple’s iPhone, By no means is this doomsday for Apple in this category and 2017 marks the tenth year of iPhone, so it is hard to believe Apple doesn’t have something big up its sleeve. Look for Apple to mix things up with whatever version(s) they bring to market in the coming year to hopefully rebound shipment growth.