Apple to Cut iPhone 6s and 6s Plus Production by 30% in Q1 2016

iPhone-6s-ColorsApple will cut production on the iPhone 6s and 6s Plus by approximately 30 percent in the first calendar quarter of 2016, reports Nikkei. Citing lackluster sales, Nikkei says iPhone 6s and iPhone 6s Plus inventory has "piled up" at retailers across the world, leading Apple to scale back production from January through March to get rid of excess stock.

Apple is said to have originally told its suppliers to continue Q1 2016 production of the iPhone 6s and iPhone 6s Plus at the same rate as the iPhone 6 and iPhone 6 Plus a year prior, but waning sales led the company to change its plans.

It is not unusual for Apple to scale down device production as an iPhone matures, but the rumored 30 percent cut from January to March is being positioned as an abnormally large production drop.

But inventories of the two models launched last September have piled up at retailers in markets ranging from China and Japan to Europe and the U.S. amid lackluster sales. Customers saw little improvement in performance over the previous generation, while dollar appreciation led to sharp price hikes in emerging markets.

Downscaled production is only expected to last through March as dealers sell through their current stock, with orders returning to normal during the April-June quarter after Apple's inventory adjustment has been completed.

Apple's production cut will impact parts suppliers in Japan and South Korea, including Japan Display, Sharp, LG Display, Sony, TDK, Alps Electric, and Kyocera. Following Nikkei's report, Apple stock has fallen two percent and hit a low of $102.41 earlier today.

Top Rated Comments

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55 months ago
Well, let's be honest. People on these boards can appreciate the technology behind 3D touch, the A9 chip, and camera, but the masses really don't care. I can't think of a single person that was like "oooh, I need 3D touch." The masses need something more flashy and tangible. Though, that is just my opinion.

3D touch, the A9, and the camera add to the experience, but they don't substantially improve/change it like a larger screen or a new design. I anticipated lackluster response, but what do I know.
Score: 33 Votes (Like | Disagree)
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55 months ago
Design as horrid as last year, marginal performance improvements, gimmicky 3D touch feature and even worse battery. Least exciting update to date.

Jony Ive in particular needs to step it up.
Score: 29 Votes (Like | Disagree)
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55 months ago
The 6 sold too well. All that pent-up demand for the bigger screen couldn't be matched this time around.

Or maybe the 6s is just too thick.
Score: 29 Votes (Like | Disagree)
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55 months ago
It's just too pricey, I can easily afford to buy an iPhone 6S but I won't because over the years buying a new iPhone got more and more expensive.
€750 for a 16 Gb 6S is just too much.
Score: 25 Votes (Like | Disagree)
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55 months ago

I'm still using an iPhone 6 Plus, but (for those using a 6S) was Force Touch and a better camera vast improvements for you to have upgraded? And how's the extra RAM helping you?

I have a 6 and just got a 6S in last week. I'm returning it. The extra RAM does not affect my usage and the camera is not what I'd call a vast improvement. Live Photos and the front facing camera flash are software upgrades and should have been part of iOS 9 for iPhone 6 users at least, but they're gimmicks to me. I've not yet seen force touch to be worthwhile. Hoping the 7 is a worthwhile upgrade this fall, otherwise I'll keep my 6 for another year. I did the same with the iPhone 4; didn't get another iPhone until the 5S.
Score: 21 Votes (Like | Disagree)
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55 months ago
good, now drop the price and release something mind blowing again. theyve been sitting on their comfy high horse for too long

on the software side ... i am afraid people got used to doing certain things one way and arent gonna learn a new way e. g. "spotlight search" or "3d touch". i keep forgetting either is there cuz i am so used to just tapping on an icon from my springboard
Score: 17 Votes (Like | Disagree)

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