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

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90 Comments

1. Busyboy

Posts: 731; Member since: Jan 07, 2015

Popcorn time

9. NexusKoolaid

Posts: 493; Member since: Oct 24, 2011

Your choice of which snack to eat in anticipation of drama that will not materialize bewilders me.

105. ILikeBubbles

Posts: 525; Member since: Jan 17, 2011

#bigwords, #overlyawkwardgrammar, #irony ...just in case you need some twitter ideas.

39. aahmed215

Posts: 169; Member since: Jun 18, 2012

Apple doesn't allow that app on its devices.

53. almostdone

Posts: 417; Member since: Sep 25, 2012

As predicted by many Apple used it's trump card going with larger screens and opening up to the Chinese market. They may have sold 13M units in the first weekend BUT this includes for the first time ever the Chinese market on the opening weekend. They account for a huge portion of all iPhones currently being sold.. I also think adding the gimmick 3D touch maybe useful for the technically inclined i.e. people reading these articles but most people who buy iPhones are your average Joe or Jane and this adds a layer of complication. Android users have no such problem... They can use either OS.

84. DoggyDangerous

Posts: 1028; Member since: Aug 28, 2015

They didn't open up to Chinese market. Chinese just allowed them to enter. Chinas largest carrier made deal with them just last year.

89. coldspring22

Posts: 349; Member since: Feb 28, 2015

Maybe average Joe/Jane in US, but not in China. Iphones costing almost $1000 are beyond reach of most Chinese people (average annual house hold income is ~$10K). So probably people who buy iphones are either fairly wealthy, or extreme ifanboys like those who are trading in their kidney for an iphone.

2. TyrionLannister unregistered

That was pretty much expected. People don't get excited about S models anymore. Especially since the camera underperforms.

8. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Is it the best camera? No. But one thing I will still say is that is one hell of a overall performer. Don't even get me started on how beautiful 4K video looks with OIS.

12. buccob

Posts: 2946; Member since: Jun 19, 2012

4K video looks good independently if its iOS or Android... in fact I would say the experience is better in Android because most 4K recorders use Stereo instead of Mono audio...

33. DFranch

Posts: 493; Member since: Apr 20, 2012

Buccob: He said OIS (Optical Image Stabilization) not iOS.

34. Finalflash

Posts: 4062; Member since: Jul 23, 2013

Lol I think you misread a bit since he said OIS not iOS.

13. SIGPRO

Posts: 2810; Member since: Oct 03, 2012

Sorry but the iPhone just sucks with mono recording. My Lumia records Dolby Digital Plus 5.1 sound!

24. Wiencon

Posts: 2278; Member since: Aug 06, 2014

Nothing beats Lumia's when it comes to recording audio.

59. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Have fun downloading apps.

74. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

Is it fun beating dead horses?

78. Shocky unregistered

Sometimes, yes.

40. housry23

Posts: 136; Member since: Jun 03, 2012

I am a tech fan, but I prefer Android. I'm Android all the way in my house, but your statement is 100% TRUE! It is no longer the best camera, but the iPhone is the best camera software and that is a FACT. It is also the best at, pick up the phone, snap a picture and it turns out great. It terms of just user experience in the camera, I'm going to go with the iPhone 6S Plus on that. It still wins and until Android can make the camera apps as simple and intuitive as iOS is, it will always win in this category.

51. marorun

Posts: 5029; Member since: Mar 30, 2015

Best camera software? Cant change picture quality. Cant change the video quality ( inside the app ) Very lil options. Only thing its very good is for automatic mode but most new flagship now have the same quality automatic if not better. Only thing thats make it intuitive is the lack of options lol.

55. housry23

Posts: 136; Member since: Jun 03, 2012

I meant for regular users, not camera aficionados. Like my mom. She can pick up the iPhone and be a great photographer even though she's a 60 year old lady. I got here a Moto X 2014 and she had no clue how to use the camera.

87. iushnt

Posts: 3043; Member since: Feb 06, 2013

So for you, Moto X 2014 represents the camera quality for all Android devices?

66. j2001m

Posts: 3060; Member since: Apr 28, 2014

Nope, that went to Samsung with the note 5' and all other 7420 CPU Samsung phones sorry to say mate as its got a supper get out the phone in like 1 sec mode and takes better image, I.e.. I can take a better image faster

79. 99nights

Posts: 1152; Member since: Mar 10, 2015

Lol their software is bland at best. Nokias and Lumias have the best cameras on the market and always have had. Even non techie people know this.

83. DoggyDangerous

Posts: 1028; Member since: Aug 28, 2015

IPhone is good, but not the best. Iphone's camera is good but not the best. Their UI is easy to use and many ppl who freak out with more options, love iOS for having less options

50. marorun

Posts: 5029; Member since: Mar 30, 2015

LG G4 , S6 , S6 edge , Note 5 , the new nexus , Sony Z5 ect are all a bit superior all around ( but i admit the 4k video are really great but the picture quality is not impressive )

68. Chuck007

Posts: 1409; Member since: Mar 02, 2014

I was expecting my 6S camera to beat my 6 Plus. Oh boy was I wrong... overly warm colours, over sharpening, and noticeable noise (though not as bad as the Z5), I've never been disappointed by an iPhone camera until now. What were they thinking?

88. Scott93274

Posts: 6025; Member since: Aug 06, 2013

I had predicted that the sales would be much lower simply due to the mass hysteria of the iPhone 6 finally getting a large screen will have subsided and people would wait a full two years to get the next update due to 2 year carrier contracts. Granted, I had no way of anticipating that carriers would go to such great lengths to tempt people to upgrade from last year's model but my stance stays the same, sales will fall far short of last year's sales, especially with the base model storage solution and prices.

90. coldspring22

Posts: 349; Member since: Feb 28, 2015

Yea, it's hard to see what new features are in iphone 6S that would excite average joe to upgrade. There are four people in my family who use iphone 6. But they couldn't care less about iphone 6S, as it offers nothing of added value for them over old iphone 6.

94. Scott93274

Posts: 6025; Member since: Aug 06, 2013

I'm interested to try this force touch input, but it's a curiosity for me, not some strong urge telling me that I must have this feature in my next phone. I imagine that it's the same for lots of other people. Maybe it's one of those things that you just have to try for yourself before you can fully appreciate it. But it's still not something I can say I would be excited over.

4. Clars123

Posts: 1072; Member since: Mar 16, 2015

I don't get why when a phone doesn't sell as much as expected PA calls its sales performance "weak"..surely Apple has sold enough of them to make a huge profit and can expect to make a little more before the new smartphone season begins in February-March next year. Anyway....I'm not surprised the 6S isn't quite as exciting as other S models..particularly design wise

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