Apple expected to cut parts procurement on slow iPhone sales

Japanese newspaper says suppliers are bracing for cut in orders

Asian electronic component makers are expecting Apple to cut procurement orders by about 30 percent in the current quarter due to weaker-than-expected sales of the new iPhone 6S and 6S Plus, according to a Japanese media report.

The Nikkei newspaper said Apple had originally asked its suppliers to keep first quarter production at normal January-March levels, but inventory of the new phones has backed up in retail stores and Apple is cutting production.

Apple could not be reached for comment and typically does not comment on media reports.

The cut is expected to be temporary, with production resuming at normal levels in the April to June quarter, the newspaper said.

If correct, the move could hit a large number of companies in Japan, South Korea and China that supply most of the parts that go into the iPhone. Some are well-known names, such as Sharp, LG and Sony.

The iPhone 6S and 6S Plus brought through a number of improvements over previous models, but as is typical with Apple's "S" model iPhones, many of the improvements were evolutionary and not revolutionary.

While sales might be down, the phone remains the most popular smartphone on the market, easily outselling competing handsets from the likes of Samsung, LG, Motorola, Sony and Huawei.

IPhone 6S launch in Palo Alto Martyn Williams

New iPhones lined up for sale at Apple's Palo Alto store on Sept. 25, 2015.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Apple

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Essentials

Brother MFC-L3745CDW Colour Laser Multifunction

Learn more >

Mobile

Exec

Sony WH-1000XM4 Wireless Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?