Apple Will Reduce iPhone 7 Production By 10% in Early 2017 Due to 'Sluggish' Sales

Apple plans to reduce production of the iPhone line by 10 percent beginning in the first quarter of 2017, according to supplier data collected by Nikkei. Apple is said to have experienced a similar situation thanks to accumulated inventory of the iPhone 6s late in 2015, which also caused it to lower output of that smartphone in Q1 2016.

The company attempted to prevent the same thing from happening again with the iPhone 7 by curbing production quantities on the 2016 smartphone, but even with that preemptive move Apple is again looking at a manufacturing downturn for its flagship iPhone line in the new year.

jetblackiphone
In the report, Nikkei cites "sluggish" global sales for the iPhone 7 as the main reason behind the move. Because of this, the production cuts are expected to be focused on the iPhone 7 and iPhone 7 Plus.

Apple will trim production of its iPhone family around 10% on the year in the first quarter of 2017, according to calculations by The Nikkei based on data from suppliers.

...the phones still have sold more sluggishly than expected. Information on production of the latest models and global sales suggests cuts in both the 7 and 7 Plus lines in the coming quarter.

Apple could have capitalized on Samsung's Galaxy Note7 problems earlier in the year, but according to a collection of analysts the iPhone 7 lacked "compelling" features and failed to garner interest in the new smartphone line. In September, Apple made the decision not to divulge the first weekend sales for the iPhone 7 and iPhone 7 Plus. Throughout the year, a "doom and gloom" sentiment has followed the company ever since it reported its first revenue decline in thirteen years.

Later in 2017, Apple will launch the next-generation iPhone, which is currently rumored to come in three different sizes, one of which will include a flexible OLED display with a bezel-free design. Rumors are still conflicting, however, with a report from Mac Otakara suggesting that next year's iPhone could be an iterative update on the design of the iPhone 7 with beefed up internals.

Tag: Nikkei
Related Forum: iPhone

Popular Stories

iPhone SE 4 Vertical Camera Feature

iPhone SE 4 Rumored to Use Same Rear Chassis as iPhone 16

Friday July 19, 2024 7:16 am PDT by
Apple will adopt the same rear chassis manufacturing process for the iPhone SE 4 that it is using for the upcoming standard iPhone 16, claims a new rumor coming out of China. According to the Weibo-based leaker "Fixed Focus Digital," the backplate manufacturing process for the iPhone SE 4 is "exactly the same" as the standard model in Apple's upcoming iPhone 16 lineup, which is expected to...
iPhone 16 Pro Sizes Feature

iPhone 16 Series Is Just Two Months Away: Everything We Know

Monday July 15, 2024 4:44 am PDT by
Apple typically releases its new iPhone series around mid-September, which means we are about two months out from the launch of the iPhone 16. Like the iPhone 15 series, this year's lineup is expected to stick with four models – iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max – although there are plenty of design differences and new features to take into account. To bring ...
bsod

Crowdstrike Says Global IT Outage Impacting Windows PCs, But Mac and Linux Hosts Not Affected

Friday July 19, 2024 3:12 am PDT by
A widespread system failure is currently affecting numerous Windows devices globally, causing critical boot failures across various industries, including banks, rail networks, airlines, retailers, broadcasters, healthcare, and many more sectors. The issue, manifesting as a Blue Screen of Death (BSOD), is preventing computers from starting up properly and forcing them into continuous recovery...
iphone 14 lineup

Cellebrite Unable to Unlock iPhones on iOS 17.4 or Later, Leak Reveals

Thursday July 18, 2024 4:18 am PDT by
Israel-based mobile forensics company Cellebrite is unable to unlock iPhones running iOS 17.4 or later, according to leaked documents verified by 404 Media. The documents provide a rare glimpse into the capabilities of the company's mobile forensics tools and highlight the ongoing security improvements in Apple's latest devices. The leaked "Cellebrite iOS Support Matrix" obtained by 404 Media...
Apple Watch Series 9

2024 Apple Watch Lineup: Key Changes We're Expecting

Tuesday July 16, 2024 7:59 am PDT by
Apple is seemingly planning a rework of the Apple Watch lineup for 2024, according to a range of reports from over the past year. Here's everything we know so far. Apple is expected to continue to offer three different Apple Watch models in five casing sizes, but the various display sizes will allegedly grow by up to 12% and the casings will get taller. Based on all of the latest rumors,...
tinypod apple watch

TinyPod Turns Your Apple Watch Into an iPod

Wednesday July 17, 2024 3:18 pm PDT by
If you have an old Apple Watch and you're not sure what to do with it, a new product called TinyPod might be the answer. Priced at $79, the TinyPod is a silicone case with a built-in scroll wheel that houses the Apple Watch chassis. When an Apple Watch is placed inside the TinyPod, the click wheel on the case is able to be used to scroll through the Apple Watch interface. The feature works...

Top Rated Comments

Since1987 Avatar
99 months ago
Headphone Jack. We tried to warn everyone that was a bridge too far. But you know.... THINNER !!!!
Score: 78 Votes (Like | Disagree)
maxwelltech Avatar
99 months ago
Well Apple, it may be a good idea to not use the same design for three years in a row.
Score: 68 Votes (Like | Disagree)
trekkie604 Avatar
99 months ago
not surprising. i'm returning mine today. first iPhone in 6 years I have done so. I hate the elimination of the headphone jack.
Score: 47 Votes (Like | Disagree)
NT1440 Avatar
99 months ago
I love how every year orders go down in Q1, yet no one seems to bat an eye when it's claimed to be due to poor sales.

Maybe, and stay with me here guys, you don't need to produce as many phones a month as you do during the run up to the Holiday season??

I'd love to know how to get an analyst job, must be nice to be paid to just make claims regardless of the impact or veracity of them. I'd start with a piece on Butterball being in trouble because turkey sales mysteriously slowed down after November...for some unknowable reason. :rolleyes:
Score: 39 Votes (Like | Disagree)
BigDO Avatar
99 months ago
Love this. Exactly the message they need to curb Cook's arrogance and complete loss of touch with the customer base.

Hopefully more of this on the way with the hapless MBP line.
Score: 38 Votes (Like | Disagree)
RedOrchestra Avatar
99 months ago
Can't even imagine the look on the faces of those that have held off purchasing the 2016 edition of the iPhone ONLY to find out that the 2017 edition is identical ... except the camera will be repositioned in order to sell the newest iteration of the Silicone Case.
Score: 34 Votes (Like | Disagree)