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Report: Apple to reduce iPhone 6S series component orders by 30% amid lackluster sales

Posted: , by Mihai A.

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Report: Apple to reduce iPhone 6S series component orders by 30% amid lackluster sales
According to a new report from the Nikkei Asian Review, Apple is scaling back iPhone 6S and iPhone 6S Plus production for the March quarter in response to lackluster sales. Allegedly, the manufacturer has reduced orders placed to its component suppliers by about 30%.

The report claims that Apple has over-estimated iPhone 6S and 6S Plus demand for the December quarter, the launch quarter for the new models. The company is said to have made more units than retailers have been able to sell, which resulted in excess inventory at the start of 2016. The publication says that Apple previously indicated to its suppliers to maintain the same production rhythm as last year when the Apple iPhone 6 and the Apple iPhone 6 Plus broke one sales record after another.

The Nikkei Asian Review is an English-language financial newspaper part of Nikkei Inc, which is the same conglomerate that owns the world's largest financial newspaper (The Nikkei) as well as the Financial Times. Given the credibility of the publication, this rumor supersedes all previous reports regarding iPhone 6S and 6S Plus sales, and there have been quite a few of those in the past few months.

It should be noted that the idea of Apple experiencing negative growth with the Apple iPhone 6S series has been around since before the two new iPhone models were officially unveiled by Apple this past September. When Apple announced record sales after the opening weekend, some interpreted this as a sign that iPhone sales will maintain their upward trajectory. In retrospective, it looks like these numbers were only the natural result of including China in the first wave of the markets where the iPhone 6S series was sold.

As Apple insider notes, first-tier market research firms such as FBR & Co., RBC Capital Markets, J.P. Morgan, and Morgan Stanley have cut their iPhone sales estimates over the past few weeks.

On January 26, Apple will announce the financial results for the December quarter. On that date, we'll get to know how well the iPhone 6S series performed during its launch quarter, although the biggest concern for analysts is the performance of the iPhone 6S series during the March and June quarters.

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posted on 05 Jan 2016, 15:04 1

1. Commentator (Posts: 3686; Member since: 16 Aug 2011)


I s'pose that could help explain why their stock is down 2.5% today. They either need to find that "next big thing" or somehow make smartphones that big thing again.

posted on 05 Jan 2016, 15:15 14

9. DellDeep (banned) (Posts: 72; Member since: 24 Nov 2015)


Next big thing?

No buddy, they need to plan the "next big stolen idea."

posted on 05 Jan 2016, 15:19 6

12. engineer-1701d (unregistered)


they should drop by %50 because people will not take nice to the lake of a headjack

posted on 05 Jan 2016, 15:32 5

16. Hexa-core (banned) (Posts: 2131; Member since: 11 Aug 2015)


Nothing stays at the top forever.
Apple should change it's UI and add some customizations.
Same boring design and restrictive OS year after year.

posted on 05 Jan 2016, 17:12 1

31. Ahovking (Posts: 710; Member since: 03 Feb 2015)


Current headjack are analog.. not digital.. but shockingly analog.. at some point we have to ditch Current headjack there outdated and limited compared to the potential to digital headjack.

posted on 05 Jan 2016, 18:25

35. ibend (Posts: 4602; Member since: 30 Sep 2014)


or the "next small thing", they need to release their cheapo series (iPhone6c) ASAP to save their investors money

posted on 05 Jan 2016, 15:07 9

2. DellDeep (banned) (Posts: 72; Member since: 24 Nov 2015)


Lolz Apple getting murdered HAHAAAAHAAAAA ROFLMAO

Say something now ifanboys....oh wait, all I hear is complete silence

#shouldaGotAnAndroid lolz

posted on 05 Jan 2016, 15:10 11

5. Commentator (Posts: 3686; Member since: 16 Aug 2011)


Yup, all those Android manufacturers are doing sooooo great right now...

posted on 05 Jan 2016, 15:16 4

10. techperson211 (Posts: 1230; Member since: 27 Feb 2014)


That's the good thing about android. Competition everywhere, the reason why OEM needs to have a so called gimmicky feature that sometimes workout for them. If wasn't for the competition there will be no 2k nor 4k resolution. IP certified and a lot more. While on ios, we know apple is the only OEM. The reason why they don't need to do anything.

posted on 05 Jan 2016, 15:17 4

11. DellDeep (banned) (Posts: 72; Member since: 24 Nov 2015)


DJ Khaled: Yo!

isheep patrol: what's up!?

DJ Khaled: Another one

posted on 05 Jan 2016, 15:13

8. techperson211 (Posts: 1230; Member since: 27 Feb 2014)


Price and incremental updates are the factors affecting their sales. This is a good sign for them to again step up their game, since the iPhone 4s, I haven't bought any iPhone since what they do are all the same. Going to stick with my z5 premium for a year or 2.

posted on 05 Jan 2016, 17:14

32. Ahovking (Posts: 710; Member since: 03 Feb 2015)


murdered? im pretty sure in terms of sales, Apple is still second to only Samsung, and profit wise still takes 90% of total revenue made in the smartphone industry.

Everyone sales/profits have been declining or stagnating, Apple is now finally joining the ranks of samsung, HTC, Song with declining or stagnating growth.

posted on 05 Jan 2016, 15:08 6

3. natypes (Posts: 1093; Member since: 02 Feb 2015)


We'll probably see them "copying" even more features from Android now. Let's face it iOS is boring as hell.

posted on 05 Jan 2016, 15:22 5

13. engineer-1701d (unregistered)


a theme store like samsung thats the next big thing for apple

posted on 05 Jan 2016, 15:43

21. keithtae (Posts: 435; Member since: 25 Mar 2015)


You're right, a theme store will save Apple (not being sarcastic) , at least for a long while, but Apple phones are very underpowered, to a point applying any themes on their phones will basically lag the s**t out of their phones. Hence the lack of customizations for their phones.

posted on 05 Jan 2016, 17:17

33. Ahovking (Posts: 710; Member since: 03 Feb 2015)


Honestly, i wouldn't want a theme story, i like the limited control i have over IOS.. i have the problem of over customizing my android phones to the point where i harm my experience with it.

posted on 06 Jan 2016, 04:54

37. MrElectrifyer (Posts: 2982; Member since: 21 Oct 2014)


Check your local therapy, an OS isn't the cure for such disorder...

posted on 05 Jan 2016, 15:12 5

7. sissy246 (Posts: 1011; Member since: 04 Mar 2015)


lmao poor isheep lol

posted on 05 Jan 2016, 15:30 1

14. PhoneCritic (Posts: 691; Member since: 05 Oct 2011)


The Whole market in reality is slowing down and since basic mid tier phones on the Android side perform just as good as high end spec models there is no need for upgrading to the latest and greatest. The iPhone 5s and 6 are good enough.

However, there is another side of the equation. " nothing last forever" the iPhone brand is like the rock stars of 80's & 90's ( Duran Duran, Culture club, Van Hallen, Poison, Deff Leppered, Hootie and the blowfish, REM, Justin Beiber etc..) they attracted millions of teenage girls and groupies at the height of their careers. They though that it would last forever but what they forgot is those fans grow up ( and they got older and wiser) and leave behind those things.

This is what Apple is beginning to experience. Its millions of teenage fans are growing up and getting responsibilities and having kids of their own and for them any pricey gadget is not worth it. They need to be smarter with their money. It happen to Nokia, Blackberry, Sony, etc. and it will happen to Apple, Samsung, Google, etc.. Nothing last forever

posted on 05 Jan 2016, 15:40 1

20. DRS1977 (Posts: 431; Member since: 27 May 2015)


Apple has become a Walmart commodity brand. Anyone can buy one just like almost anyone can buy a Toyota Corolla. They aren't special anymore and no one cares if you have one because millions of people have the same thing. My brother-in-law just bought an iMac two months ago and it is already being repaired right now.

posted on 05 Jan 2016, 15:31 2

15. twens (Posts: 978; Member since: 25 Feb 2012)


With such a wack front camera on my 6s plus I understand why people aren't buying it. I mean come on, the 12mp doesn't even take better pictures than the 8. People on the internet only try to make it look like its a killer camera. It's the same old results. Sometimes I even prefer my old 6 plus front cam than the new one. Too bad I've invested so much in Apple it's had to use a Samsung even with their killer cameras. Samsung should also improve their resale value issues. That alone keeps me away from Samsung phones even though I like their great cameras.

posted on 05 Jan 2016, 15:47

23. keithtae (Posts: 435; Member since: 25 Mar 2015)


Resale value issue? I bought my note 5 at lunch for AUD $950 and sold it for $850 just yesterday. Just a 100 dollars dropped in value after 3 months in AUD, I think it's great.

posted on 05 Jan 2016, 16:07

27. twens (Posts: 978; Member since: 25 Feb 2012)


Not in my country. You can buy a Samsung for say $700 and after three months you will be lucky to get $500 if you want to resell it.

posted on 05 Jan 2016, 15:33

17. banglazbless (Posts: 106; Member since: 05 Feb 2014)


Apple bit off more than it can chew. I remember everyone was predicting Samsung's demise erlier this year, I wonder if the "verge, CNET, Forbes etc is doing the same for apple?

posted on 05 Jan 2016, 15:38

18. FReDcc (Posts: 57; Member since: 11 Jun 2015)


Much needed decline in sales for Apple. At least this cloud help others to realize that not every Apple user is a blind user, majority of us are not . If Apple is not offering good products nobody is going to buy their products expect very few die heart fans. Now I hope Apple learn their mistakes and offer more features in upcoming iPhones.

posted on 05 Jan 2016, 15:38

19. keekai05 (Posts: 116; Member since: 31 Mar 2015)


Laugh all you want but Apple isn't going down the drain if you think it will because of this slowdown on their sales. Android OEM's can only dream of Apple's pocket. Tell that to your dying OEM's ROFLMAO :)

posted on 05 Jan 2016, 15:50 6

24. DellDeep (banned) (Posts: 72; Member since: 24 Nov 2015)


You might want to remove Apple's balls from your mouth.

posted on 05 Jan 2016, 16:00

25. keekai05 (Posts: 116; Member since: 31 Mar 2015)


Oh yeah? You might want to remove those lags from your throat

posted on 05 Jan 2016, 16:52 2

30. tedkord (Posts: 11687; Member since: 17 Jun 2009)


The lags got left behind in 2010. If you don't want to see them any more, join the rest of us in 2016'

posted on 07 Jan 2016, 08:04

38. keekai05 (Posts: 116; Member since: 31 Mar 2015)


Will never join you wagon. 2010 really? I am talking about the majority of Android which means including your cheap ones. They're aren't lagging are you sure? Low end, mid range and flagship they are all Android. So that "lags was left behind in 2010" is total bs for me.

posted on 05 Jan 2016, 16:00 1

26. PhoneCritic (Posts: 691; Member since: 05 Oct 2011)


Nokia did not die over night, Blackberry did not decline to what it is now over night and Apple during it almost sudden death in the late 80's and early 90's ( before the return of Jobs) Compaq did not die over night, DELL, Gateway etc.. no, there were slow downs and market saturation points and lack of innovation and vision on behalf of management.

Running efficient supply lines can only go so far. and all of these companies had deep pockets with billions. However. if the demand for the product is not there they bleed those billions and eventual exit the market. Some where down the line a company needs to recreate its self.

Again "nothing last forever" the smartphone and tablet may be superseded by the next new thing.

Apple is having its time like IBM, Nokia, Blackberry, Microsoft, etc.. tomorrow it will be someone else turn. But again nothing last forever { with the exception of God himself}

posted on 05 Jan 2016, 15:46 1

22. cncrim (Posts: 826; Member since: 15 Aug 2011)


Nothing is forever, Apple got a nice ride time to slow down.

posted on 05 Jan 2016, 16:12

28. twens (Posts: 978; Member since: 25 Feb 2012)


the 6s/6s plus are both good phones. My only issue is Apple is seriously behind in the camera department. When I compare my phone camera to that of my friends note 5 I die out of envy. Only issue stopping me from purchasing a note is because of how much I've invested in apples ecosystem and the poor resale value of Samsung phones in my country. I don't use my phones for more than 6 months.

posted on 05 Jan 2016, 16:50 1

29. tedkord (Posts: 11687; Member since: 17 Jun 2009)


I really don't understand why people get so excited about the prospect of a company falling. In the end, the only ones who will suffer are the everyday Joes who weren't paid much to begin, and will lose their jobs.

posted on 05 Jan 2016, 17:56

34. jeroome86 (Posts: 1129; Member since: 12 Apr 2012)


Think the same design people didn't see a reason to update. Pretty please with my 6s plus. Now like tinkering with my Nexus 7 since I got lolliflop off of it. First rooted device and works great with CM11. But Apple is far from going under. They're doing quite well. Be interesting to see how long the new guy lastest before being banned?

posted on 06 Jan 2016, 02:30

36. SIGPRO (Posts: 1436; Member since: 03 Oct 2012)


Apple is slowly dying.....mark my words!

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