Sales of terminals iPhone continues to decrease, if we are to believe new information that appeared last night, a Japanese publication stating that Apple has asked us for a reduction in the production of its smartphones.
At the beginning of the year, the first information appeared suggesting that the production of iPhones will be reduced as a result of the decrease in sales at the beginning of the year, the Apple company confirming the fact that sales will be reduced, something that was expected.
The problem is that sales continue to decrease in Q2 2016, so that Apple would have requested a new reduction in the production of iPhone terminals from its partners, and this has also generated a serious decrease in the price of Apple shares on the American stock market.
Apart from Apple and other partners of those from Cupertino, they had problems on the global stock exchanges, their share prices falling as a result of the publication of this information because a reduction in the production of iPhone terminals affects a variety of Asian companies.
Slow sales of the flagship iPhone 6s and iPhone 6s Plus, which debuted last autumn, have forced Apple to adjust inventories. It lowered production for the January-March quarter by about 30% from the year-earlier period. With sales still sluggish, the US company has told parts suppliers in Japan and elsewhere that it will maintain the reduced output level in the current quarter.
The sales problems are with the iPhone 6S and iPhone 6S Plus, which are not as popular as their predecessors, and the recently launched iPhone SE it won't prove to be in demand enough to cover the drop in sales of those terminals, so Apple is cutting its losses.
Moreover, the Japanese publication suggests that the iPhone 7 could be launched earlier than September so that Apple does not have three fiscal quarters of continuous declines in sales of iPhone terminals, and this could happen.
Apple apparently does not plan to produce a large enough volume of the small iPhone SE released last month to offset the slump of its flagship series. However, should Apple decide to release its next flagship model earlier than the usual September launch, parts production for that smartphone could take off around late May.
Until next week, Apple will announce the financial results for Q1 2016 next week and we can expect a lot of disappointed analysts.
