Report: Apple Is Slowing iPhone Production

Report: Apple Is Slowing iPhone Production

The iPhone is Apple's cash cow, pumping out over 60 per cent of its revenue every year. So if Apple's putting the brakes on iPhone production, implying a slowdown in sales sometime later this year, that could spell disaster for the world's most valuable corporation. A report in the Wall Street Journal claims exactly that: Apple's iPhone production is slowing down. According to "three sources familiar with Apple's supply chain", the company has reduced orders to suppliers, leading to layoffs and idle capacity at Apple's Chinese suppliers. The claims are backed up by a $US12 million grant given to Foxconn, Apple's primary iPhone manufacturer, by the Chinese government in order to minimise layoffs.

Falling iPhone sales are bad news for Apple and its gigantic profits: even moreso than tablets or laptops, every smartphone that the company sells contributes to the bottom line. There aren't really any new markets for Apple to push smartphones into, and the rise of cheap and excellent Android phones, combined with a lack of real innovation on new iPhones, could well signal a long-term slowdown in iPhone sales.

[Wall Street Journal]


Comments

    It must be 10 months before Apples biannual major release, the doomsday sayers always come out about this time.

    Come September they will be breaking records.

    My investment portfolio always sells Jan the year of the S version and buy Jan the year of the new version. This insures I buy low and sell high.

    Or it could mean the iPhone7 is coming earlier than anticipated.

      more like 6c, which seems to be the killer of all 6, 6s, plus minus sin cos ...

    ^^^ that!

    "cheap and excellent Android phones"

    Name any.
    Not advocating Apple vs Android. (I don't care)
    Just pointing that phones (any) are cheap OR quite good (excellent? haha)

    Last edited 07/01/16 9:36 am

      I can't say I've tested them all, but most cheap phones I've used have been pretty terrible.

      The only one I'd maybe pass is the much lauded Nexus 5 (the original) but it was still $400+ delivered in Aus, and while very quick and clean with the Smart side of things, it was disappointing as a phone. Reception, mic, speaker, call quality, GPS, battery were all poor.

        You damn right!
        That's exactly what I was talking about: there is no such thing as cheap and good smartphone currently.

    Only thing holding people now is the amount of content you have locked up with them.

      It's not just the amount of content that you are locked into, its the actual apps themselves, many of which are not available on other platforms or have no high end equivalent (musical instrument category in particular).

    they could always market for the masses, not the premium market... they could reduce their price by 300 dollars and still be making substantial profit per device and potentially capture a market that buys mid price phones rather than 1000 dollar phones. (this is without the 6C existing, they could simply do it to their standard line)

    Exactly pick One... The OnePlus ;) Both excellent and cheap phones.

      not recognising memory cards
      not having image stabilisation
      unfocused photos
      inconsistent and glitchy software
      weird handling of music and video in background
      unreliable bluetooth
      faulty proximity sensors
      etc
      etc

      cheap? not really
      excelent? ... meh.

        You must have had a dud, mine have worked perfect.

        Not that I think you have actually seen one in person...

    The drones are starting to awake from their slumber and realize they've been duped.

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