Apple has reportedly reduced the production of iPhone 6S and 6S plus. This action was taken after the company forecasted a reduction in sales for the iPhone 6S and 6S plus.
A Wall Street Journal report, states that multiple sources inside China alleged that stock-list has been piling up for up to two months, in a time when suppliers struggling to meet the demand for the devices.
Iphone’s leading manufacturer, Foxconn, is said to have received a $12 million subsidization fee, from the Zhenzhong government to minimize layoffs at the company’s factories. Obivously, Foxconn started dismissing several employees shortly after the Lunar New Year, due to Apple’s new sales forecast.
Apple has not made official statements to investors on the new forecast. Chief executive Tim Cook said he expects sales to increase in the fourth quarter, but declined to project future sales. Apple’s muteness on this matter, may cost them valuable stock market standing. Apple’s is at its lowest point in 12 months.
This change of fortune for the iPhone 6S and 6S plus, could be attributed to the exponetial growth of Chinese phone manufacturers Hauwei. Hauwei became the most sold phone in China last year, edging out competitors such as Apple.
The phone manufacturing market, is definitely competitive, with different brands trying to hold the attention of consumers. Apple being a top brand will definitely come back with an eye-catching piece of hardware, consequently, expecting the best from soon to be released iPhone 6C, is just fine.