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

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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38 Comments

1. Commentator

Posts: 3722; Member since: Aug 16, 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.

9. DellDeep

Posts: 72; Member since: Nov 24, 2015

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

12. engineer-1701d unregistered

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

16. Hexa-core

Posts: 2131; Member since: Aug 11, 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.

31. Ahovking

Posts: 711; Member since: Feb 03, 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.

35. ibend

Posts: 6747; Member since: Sep 30, 2014

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

2. DellDeep

Posts: 72; Member since: Nov 24, 2015

Lolz Apple getting murdered HAHAAAAHAAAAA ROFLMAO Say something now ifanboys....oh wait, all I hear is complete silence #shouldaGotAnAndroid lolz

5. Commentator

Posts: 3722; Member since: Aug 16, 2011

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

10. techperson211

Posts: 1280; Member since: Feb 27, 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.

11. DellDeep

Posts: 72; Member since: Nov 24, 2015

DJ Khaled: Yo! isheep patrol: what's up!? DJ Khaled: Another one

8. techperson211

Posts: 1280; Member since: Feb 27, 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.

32. Ahovking

Posts: 711; Member since: Feb 03, 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.

3. natypes

Posts: 1110; Member since: Feb 02, 2015

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

13. engineer-1701d unregistered

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

21. keithtae

Posts: 564; Member since: Mar 25, 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.

33. Ahovking

Posts: 711; Member since: Feb 03, 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.

37. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

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

7. sissy246

Posts: 7078; Member since: Mar 04, 2015

lmao poor isheep lol

14. PhoneCritic

Posts: 1354; Member since: Oct 05, 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

20. DRS1977

Posts: 679; Member since: May 27, 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.

15. twens

Posts: 1172; Member since: Feb 25, 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.

23. keithtae

Posts: 564; Member since: Mar 25, 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.

27. twens

Posts: 1172; Member since: Feb 25, 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.

17. banglazbless

Posts: 114; Member since: Feb 05, 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?

18. FReDcc

Posts: 73; Member since: Jun 11, 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.

19. keekai05

Posts: 116; Member since: Mar 31, 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 :)

24. DellDeep

Posts: 72; Member since: Nov 24, 2015

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

25. keekai05

Posts: 116; Member since: Mar 31, 2015

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

30. tedkord

Posts: 17312; Member since: Jun 17, 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'

38. keekai05

Posts: 116; Member since: Mar 31, 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.

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