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Apple iPhone 6S, 6S Plus suffer setback: Top 5 points to note

Thu January 07 2016, 8:29 pm
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    After starting off stupendously since being unveiled in terms of both sale and user reactions, Apple iPhone 6S, 6S Plus smartphones' have hit a hurdle and thereby rattled the nerves of investors in the US giant’s Asian suppliers. Here are top 5 points to note: (Reuters)

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    1. Apple iPhone 6S, 6S Plus: According to a Nikkei report, Apple Inc is expected to cut production of its latest iPhone models by about 30 per cent in the January-March quarter due to mounting inventories. As inventories of the iPhone 6s and 6s Plus have piled up since they were launched last September, production will be scaled back to let dealers go through their current stock, the business daily reported. “This is an eye-opening production cut which speaks to the softer demand that Apple has seen with 6s out of the gates,” FBR Capital Markets analyst Daniel Ives said. “The Street was bracing for a cut but the magnitude here is a bit more worrisome.” (Reuters)

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    2. Apple iPhone 6S, 6S Plus: Apple was not immediately available for comment but some Taiwanese suppliers pointed to falling sales, a rare holiday break and a government subsidy as evidence of the gloomy outlook. “The slowing down of the market is the truth,” one Taiwanese supplier said, requesting anonymity because they did not comment on specific clients or confidential agreements. (Reuters)

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    3. Apple iPhone 6S, 6S Plus: In China’s Henan province, the Zhengzhou capital city government said in a statement on its website this week it had awarded 82 million yuan ($12.53 million) in subsidies to companies under Foxconn, a major iPhone assembler. Officially called Hon Hai Precision Industry Co, Foxconn employs hundreds of thousands of workers in the province, and a subsidy of this kind suggests the government is concerned about the company’s ability to maintain its workforce, analysts said. Another Taiwanese supplier said Foxconn had granted its factory workers time off around Chinese New Year, which falls on February 8, rather than follow its past practice of paying overtime to keep its production lines humming through the biggest holiday in China. (Reuters)

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    4. Apple iPhone 6S, 6S Plus: Production is expected to return to normal in the April-June quarter, the Nikkei reported. However, Patrick Moorhead, an analyst at Moor Insights & Strategy, said he was a bit skeptical about the production cut reports. “Apple has been gaining significant market share in pretty much every region, and I’m not seeing a global slowdown,” Moorhead said. (Reuters)

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    The new Apple corporate lease scheme is aimed at getting more enterprises to use Apple devices. Apple has also applied the offer to all Apple iPad models. Under this scheme corporate users can, at any time, move from one Apple iPhone to another, and pay the change in monthly fee as per the model.

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