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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.

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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.

Related Roundup: iPhone 7
Tag: nikkei.com


Top Rated Comments

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3 weeks ago
Headphone Jack. We tried to warn everyone that was a bridge too far. But you know.... THINNER !!!!
Rating: 78 Votes
3 weeks ago
Well Apple, it may be a good idea to not use the same design for three years in a row.
Rating: 68 Votes
3 weeks 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.
Rating: 47 Votes
3 weeks 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:
Rating: 39 Votes
3 weeks 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.
Rating: 38 Votes
3 weeks 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.
Rating: 34 Votes
3 weeks ago
Can't imagine what they consider Mac sales to be if the iPhone ones are "sluggish."
Rating: 30 Votes
3 weeks ago
Yup. Must be from sluggish sales, and not from the usual sales volume decline after the rush of a launch of a new model and holiday shopping season.
Rating: 27 Votes
3 weeks ago
Every year it's the same article and the same responses. The sales go down because the initial rush to buy a new iPhone is gone and now it's just normal sales and instead of taking that into account and well...history...people want to sensationalize everything and make it seem like Apple is doomed or some crap.

How many times do people have to read the same articles and leave the same responses? Use your brain. It's not from a lack of a headphone jack if the initial sales were more than ever before. It's not because of the same design. This article isn't just your personal excuse to vent at Apple and say "yep. That's why you suck"
Rating: 25 Votes
3 weeks ago
But I thought the iPhone 7 was the "greatest iPhone we've ever made"?
Rating: 23 Votes

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