Apple said to reduce component orders in response to weak iPhone 6s sales

Apple said to reduce component orders in response to weak iPhone 6s sales
With the iPhone 6s series, Apple has managed to break the pre-order record set last year with the iPhone 6 and iPhone 6 Plus, selling 13 million units in the first weekend of commercial availability. However, while it may seem like Apple's new smartphone generation was off to a great start, it looks like some analysts don't believe that the new iPhones are going to sell better than the previous ones.

According to Pacific Crest Securities chip analyst John Vinh, Apple has reduced component orders by about 15% following weaker-than-expected sales in the week following the launch. This information was allegedly obtained from multiple sources within the chip-making industry. Vinh writes that his company now expects Apple to sell about 67 million iPhone 6s and 6s Plus units in the fourth quarter of the year, significantly below the 75-80 million unit shipments that many market analysts predict.

Note that this isn't the first time that we've heard about Apple reducing component orders. A few weeks ago, a report from Digitimes claimed that Apple has revised its Q4 2015 shipping estimates to 65-70 million units, and this new information seems to correlate well. Going back even further to this past summer, multiple analysts suggested that Apple might experience negative growth in the smartphone segment with the iPhone 6s generation.

Although some are fairly pessimistic about Apple's Q4 2015 smartphone shipments, others believe that the iPhone 6s lineup will beat the sales record set by the iPhone 6 generation. Morgan Stanley’s Katy Huberty says that she expects Apple to report a 7% YoY increase in smartphone shipments in fiscal year 2016, quoting strong iPhone user loyalty and shorter update cycles as the primary drivers for growth.

What do you guys think? Will the iPhone 6s generation be the first S-cycle series doesn't sell better than its predecessor?

source: Barron's via GforGames

FEATURED VIDEO

90 Comments

77. JustDroppingIn

Posts: 2; Member since: May 05, 2015

Why does everyone get so worked up about this iPhone vs. Android thing? We all prefer different things. If you like apple, then buy it. If you like Android, then buy an android phone. You're bragging and talking trash about each company like you're on their payrolls. SMH To be honest, neither of this companies care about you. They just want you money....

82. keekai05

Posts: 116; Member since: Mar 31, 2015

Tell that to TechieXP1969 who thinks that every iOS users are stupid because we spend "our" hard-earned money for a phone that we like.

86. GreenZone

Posts: 146; Member since: Mar 04, 2014

Dont bother TechyXP1969, he's just a butthurt moron

103. coldspring22

Posts: 349; Member since: Feb 28, 2015

A minor distinction: Android is not a company, but an open source platform. Apple on the other hand, is definitely a company, and IOS is simply a product of Apple. And yes Apple do want your money. If someone wanted to make not-for-profit company to manufacture smart phones for needy population, they can do that with Android, but this is not possible with Apple.

76. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

Low demand my ass, there must be something missing in this story...we'll hear if it's record breaking this coming Q4 earnings call. Until then...taking this with a table spoon of salt.

101. coldspring22

Posts: 349; Member since: Feb 28, 2015

Don't listen to isheeps, pay attention to KGI with their excellent track record of predicting iphone sales: zero or negative iphone sales growth in Q4 2015.

75. hanabi

Posts: 177; Member since: Oct 08, 2015

Phones are well-built these days, ppl can use phone for 3 years.

100. coldspring22

Posts: 349; Member since: Feb 28, 2015

That would be death knell for Apple. Apple brass want iphones to break every year so isheeps can buy replacement from Apple.

72. p51d007

Posts: 706; Member since: Nov 24, 2013

MAYBE people are starting to WAKE UP to the fact that they are getting DUPED by the endless cycle of upgrading every year. (not talking apple, never had one, but it still applies). The Android phones, with the SD801 chip, for 99% of the applications like the stupid candy crush, flappy birds garbage, plus photos, web, mp3's, streaming videos, text, talk WORK JUST FINE, if said person bought a quality device, hasn't gone hog wild rooting, screwing with god knows how many roms, kernels etc. People get too hung up on the latest & greatest, and believe that 2-5% difference in benchmarks, makes for a better user experience, or some other marketing BS. H*ll, I'm running an almost 2 year old phone with a SD400 chip, 2gb ram, 16gb internal, 16gb ext card. I shoot a lot of photos, work related, email, phone, web etc and it is flawless. Ran JB4.3 for almost a year before upgrading to LL5.1 It's been running 37 days without rebooting or locking up requiring a reboot. It gets used A LOT for phone, text, email, web. Hey, it's your money, you want to spend it on the latest, fell free, but considering the economy being in the tank, I'd rather SAVE my money. This years whiz bang cool device, will be history in 9 months anyway.

102. coldspring22

Posts: 349; Member since: Feb 28, 2015

Agreed. That's going to apply to both Android and Iphones going forward. Not a big deal for many Android companies as they also make money doing something else (like Samsung). But for Apple iphone is their main source of revenue and profit. Ifans will upgrade religiously every year regardless of what Apple dishes out, but if masses of normal people who happen to use iphone upgrade less often impact will be huge.

65. jessyi

Posts: 327; Member since: Jan 08, 2015

LG v10..far worth my money more than an iphone with gimmik 3Dtouch..works fast and fluid with the best camera..

57. Canaan

Posts: 351; Member since: May 25, 2014

This probably tells companies that they should upgrade their phones every two years instead of one since phones today are far more durable and reliable.

46. Monsterhunter

Posts: 42; Member since: Oct 14, 2015

These stupid analyst guys always say lower then expected. Apple will do well regardless. Lol LMAO.....Apple should become a political party named the apple regime. Give everyone everything and than control everything........then sales would rise above all expectations. Lol

38. flipjzn

Posts: 257; Member since: Jun 22, 2012

"Allegedly...." So Apple didn't say it right, Mihai?

37. Andrewtst

Posts: 697; Member since: Jan 25, 2009

The iPhone 6S Plus price at least RM 3.7K up to RM 4.7K in my country, this is insanity price! That money can buy a well solid laptop! Or in short probably a normal worker in general as their hard earn of two months salary! Even a much better Note5 only cost RM 2.7K With such price I wonder how many units actually sold than in store.

31. jeroome86

Posts: 2314; Member since: Apr 12, 2012

This is good news. Should be able get my 6s plus after work. Can't wait.

30. Shubham412302

Posts: 596; Member since: Nov 09, 2011

thats what you get when you launch 16gb variant at $1000(62k INR)

29. cnour

Posts: 2305; Member since: Sep 11, 2014

Every same stories and Apple gains more and more!!!!

99. coldspring22

Posts: 349; Member since: Feb 28, 2015

See you on the downhill side LOL

19. super_cobra

Posts: 8; Member since: Oct 15, 2015

Finally decided to join. I have seen the apple hate for long in here. Specially from the Samsung fanboys. Anyways apple why the hell are you slowing down if I have to wait 2-3 weeks before you ship my 6s plus?

43. 99nights

Posts: 1152; Member since: Mar 10, 2015

Obviously you haven't been here that long since they're are more apple trolls on here than anything else. Hell they even troll BB articles. Most just copy paste the same thing over and over.

18. dandi

Posts: 6; Member since: Oct 15, 2015

This is the worse iPhone I ever had, heating problem, laggy, low battery timing, thick and heavy...... iPhone 6 is much better than this model. I am seriously thinking about to leave iPhone forever just waiting for the Microsoft's phone. I don't like Android phone because they also have these kind of issues. All other mobile phone manufacturers trying to improve the quality of their products like battery capacity, camera quality, software quality but Apple went down this time. I have used iPhone 4, 4s, 5, 5s, 6 and now bought 6s 4 days before but this time it's enough. This is my last mistake and soon I shall switch on some other mobile OS. If the phone is not giving good battery timing then it is not good in daily use. With a lot of issues how can Apple increase the sale. It shall more decrease in future. How long people become fool with Apple toys.

42. 99nights

Posts: 1152; Member since: Mar 10, 2015

My 5s has alot of these problems. Seems ios9 almost bricked my phone.

17. justrt

Posts: 446; Member since: Jul 10, 2014

Yes! Finally!

16. SIGPRO

Posts: 2819; Member since: Oct 03, 2012

IPhone 6s is just crap period!

80. keekai05

Posts: 116; Member since: Mar 31, 2015

And so are you

104. coldspring22

Posts: 349; Member since: Feb 28, 2015

Maybe not crap, but barely different from iphone 6 for average user who are not ifanboys. Looks like Apple's revolutionary iphone is not so revolutionary any more.

15. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

So much for the record breaking pre-orders. I know someone else who had this issue too. Samsung. When the GS5 was released it also had pre-order records over the S4, but then after all the reviews which were poor even though the S5 was a much more solid upgrade over the S4 vs the iPhone 6S is over the 6; the sales started to fall fast. But hey Sammy still sold over 60M+ and still counting as the phone is still selling. So I guess Apple will sell their usual 150M smartphones for this year? I'm actually surprised because its only been just over a month of sales. Maybe everyone is waiting for the holiday? Come on, I am sure ifans can come up with more excuses. LET's HEAR THEM!!! NO ONE MAKES MONEY WITH IOS!!!! So here is a bet. I bet the iPhone 7 will have 32GB of storage, will have a 16MP camera, will have A10X chip on the plus so they can claim this is why the 6S Plus didnt have splitscreen and iOS X will have all the things iOS9 didnt have. I also predict, iOS X will need a patch with 5 days of its release to 10.1, and that by the time iOS 11 comes, iOS X will have the same amount of releases as OS X. What are we at now 10.11 for OS X now? So iOS X 10.11 for 11 patches. /(joke)(sarcasm)(trolling)(nick-picking)

21. hellbread

Posts: 309; Member since: Nov 21, 2014

There are some forecasts of 248 million iPhone sales for FY2016 http://pocketnow.com/2015/10/15/iphone-in-three-graphs

44. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Meaning? After the orginal Galaxy S appear, it took Samsung only 3 years to sell over 200M phones in a single year. How long did it take Apple? After the release of the original Galaxy S, it took Samsung 4 years to sell 300M phones per year and they still have that number. Apple is 8 years in and still hasnt even broke 250M yet. What is YOUR point.

* Some comments have been hidden, because they don't meet the discussions rules.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.
FCC OKs Cingular's purchase of AT&T Wireless