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Apple to cut production of iPhone 7 by 10 percent due to sluggish sales

By Bryan Chan & Cookie Monster - on 3 Jan 2017, 9:14am

Apple to cut production of iPhone 7 by 10 percent due to sluggish sales

Apple may continue to face declining sales of its iPhones this year. Based on information from suppliers, Japanese publication Nikkei claims that Apple will cut production of its iPhone lineup, in particular the iPhone 7 and iPhone 7 Plus, by 10 percent in Q1 2017.

Even though Apple has already cut production last quarter based on the sales of the iPhone 6s in Q1 2016, the sales of the iPhone 7 and 7 Plus fared worse than expected. Apple also continued to face supply constraints for the iPhone 7 Plus as there is a shortage of dual camera sensors. 

Ming-Chi Kuo, an Analyst with KGI Securities saw this coming a few months ago; he predicted that sales of the iPhone 7 would not exceed that of the iPhone 6s.  With iPhones accounting for the majority of profits, Apple could face another difficult period this year.

Source: Nikkei via AppleInsider