Sluggish sales of iPhone 7 forced Apple to cut production by 10%
The iPhone 7 and 7 Plus are not selling as well as expected.
Apple may continue to face declining sales of its iPhones this year.
Based on information from suppliers, Japanese publication Nikkei claims that Apple will cut production of its iPhone lineup, in particular the iPhone 7 and iPhone 7 Plus, by 10% in Q1 2017.
Even though Apple has already cut production last quarter based on the sales of the iPhone 6s in Q1 2016, the sales of the iPhone 7 and 7 Plus fared worse than expected. Apple also continued to face supply constraints for the iPhone 7 Plus as there is a shortage of dual camera sensors.
KGI securities analyst Ming-Chi Kuo saw this coming a few months ago; he predicted that sales of the iPhone 7 would not exceed that of the iPhone 6s. With iPhones accounting for the majority of profits, Apple could face another difficult period this year.
Source: Nikkei via AppleInsider
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