Apple To Drop Its Production up to 30% this 2016
In the first quarter of 2016 Apple is expected to cut its production of iPhone models about 30% due to increasing unit inventories, the recent report rattling the investors of the giant tech Asian supplier.
Inventories of iPhone 6s and even 6s Plus piled up since the recent launch September of 2015, and production were scaled back as dealers experienced slow down on sales.
Report also prompted around 2.5% drop in the Apple shares, which shows lost about quarter of their value from its record highs last April, dazzling worries over the slowing shipments. The demand on iPhone screens and iPhone chips also lowers on as its inventory continues to rise.
Japan Display Incorporated (JDI) leading LCD panel makers fell up to 4.7%, the recent dropdown has not been recorded in over four months. Also TSMC world’s largest chipmaker used in all Apple iPhones fell off about 1.1%, the data levels not been seen since middle of November. Pegatron Corp a Taiwanese assembler, was off 4% estimated trade around T$69.00, lowest seen in 2015.
No statement has been issued by Apple on the recent data. Investors fears that iPhone shipments might fall the first time ever. Wall Street tempered its view on high-flying stock recent months.