{Apple is expected to cut production of its latest iPhone models by about 30 per cent in the January-March quarter due to slower shipments. The news has rattled the nerves of investors in the US giant’s Asian suppliers.}<\/p>\n
As inventories of the iPhone 6s and 6s Plus have “piled up at retailers” since they were launched last September, production will be scaled back to let dealers go through their current stock, the business daily Nikkei reported.<\/p>\n
The report prompted a 2.5 per cent drop in Apple shares, which have lost about a quarter of their value from record highs in April, reflecting worries over slowing shipments. Shares in the mainly Asian makers of the iPhones’ screens and chips were also sharply lower on Wednesday.<\/p>\n
“This is an eye-opening production cut which speaks to the softer demand that Apple has seen with 6s out of the gates,” FBR Capital Markets analyst Daniel Ives said, adding the magnitude of the cut was “worrisome”.<\/p>\n
Among LCD panel makers, Japan Display fell 4.7 per cent while LG Display fell 3.4 per cent.<\/p>\n
The major iPhone assembler Hon Hai Precision Industry, known as Foxconn, was down 1.8 per cent.<\/p>\n
TSMC, the world’s largest chipmaker and which has supplied some of the chips used in iPhones, was off about 1.1 per cent, levels not seen since mid-November. Another Taiwanese assembler, Pegatron, was off about 4 per cent, lows not seen in a year.
\nProduction is expected to return to normal in the April-June quarter, the Nikkei reported.<\/p>\n
However, Patrick Moorhead, an analyst at Moor Insights & Strategy, said he was a bit sceptical about the production cut reports.<\/p>\n
“Apple has been gaining significant market share in pretty much every region, and I’m not seeing a global slowdown,” Mr Moorhead said.<\/p>\n
Apple was not available for comment.<\/p>\n
Tepid forecasts by Apple suppliers such as Jabil Circuit , which manufactures casings for iPhones, and Dialog Semiconductor in December stoked fears that iPhone shipments could fall for the first time.<\/p>\n
Wall Street has also tempered its view on the high-flying stock in recent months. Since early December, about a third of the analysts tracked by Thomson Reuters have trimmed their estimates on Apple.<\/p>\n
For the 2016 financial year, Apple is expected, on average, to grow revenue by under 4 per cent, a far cry from the 28 per cent revenue growth it achieved in the previous financial year.<\/p>\n
Source:Reuters:[Apple expected to cut iPhone 6s production by a third
\n->http:\/\/www.smh.com.au\/technology\/technology-news\/apple-expected-to-cut-iphone-6s-production-by-a-third-20160106-gm0bqx.html]<\/p>\n","protected":false},"excerpt":{"rendered":"
{Apple is expected to cut production of its latest iPhone models by about 30 per cent in the January-March quarter due to slower shipments. The news has rattled the nerves of investors in the US giant’s Asian suppliers.} As inventories of the iPhone 6s and 6s Plus have “piled up at retailers” since they were […]<\/p>\n","protected":false},"author":3,"featured_media":2000071315,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[75],"byline":[2482],"hashtag":[],"class_list":["post-22334","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-science-technology","tag-homenews","byline-reuters"],"bylines":[{"id":2482,"name":"REUTERS","slug":"reuters","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":null}],"contributors":[{"id":2482,"name":"REUTERS","slug":"reuters","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":null}],"featured_image":{"id":2000071315,"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton22334.jpg","alt":"","caption":"","mime_type":"image\/jpeg","width":0,"height":0,"sizes":{"thumbnail":{"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton22334.jpg","width":1,"height":1},"medium":{"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton22334.jpg","width":1,"height":1},"medium_large":{"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton22334.jpg","width":1,"height":1},"large":{"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton22334.jpg","width":1,"height":1},"full":{"url":"https:\/\/en-images.igihe.com\/IMG\/logo\/arton22334.jpg","width":0,"height":0}}},"_links":{"self":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/22334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/comments?post=22334"}],"version-history":[{"count":0,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/22334\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/media\/2000071315"}],"wp:attachment":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/media?parent=22334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/categories?post=22334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/tags?post=22334"},{"taxonomy":"byline","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/byline?post=22334"},{"taxonomy":"hashtag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/hashtag?post=22334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}