Apple scaling back iPhone 7 production as early demand fades - report

Posted:
in iPhone edited December 2016
Apple is cutting down on iPhone 7 orders from suppliers as the initial wave of consumer demand subsides, a report claimed on Thursday.




Demand in China and other markets has scaled back substantially since the iPhone 7 launched in September, Taiwanese supply chain sources told DigiTimes. Initial sales were said to have been hot partly due to interest in Jet Black models, and the death of the Samsung Galaxy Note 7, which attracted shoppers looking for an alternative.

Suppliers are allegedly being conservative about their iPhone 7 shipment forecasts for the first half of 2017, expecting 5 million fewer units than the second half of 2016.

Apple typically slows down iPhone orders as a new year approaches, since the highest shopper demand is generally during its September launch window and the subsequent holiday rush. It's not clear then to what extent Apple might be scaling back, especially since results from the first full quarter of iPhone 7 sales won't be announced until January.

In the meantime suppliers are already said to be turning their attention to 2017 iPhone models, which could have features like glass backs and edge-to-edge displays, with one model making the switch to OLED.
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Comments

  • Reply 1 of 123
    irelandireland Posts: 17,547member
    It's an expensive phone. In Europe the phone starts at $825 including 23% tax. $635 excluding tax.

    I reckon if the phone started at €649 instead of €779 it'd be an awful lot more popular for new phone buyers here.
    edited December 2016 calijbishop1039ipilyaschlackfotoformatavon b7propod
  • Reply 2 of 123
    calicali Posts: 3,495member
     What do you guys think of Apple providing carrier services? 

     I believe this will help apple better distribute their own products and cut all the crap with carriers taking advantage of its users. 
    magman1979watto_cobra
  • Reply 3 of 123
    irelandireland Posts: 17,547member
    cali said:
    What do you guys think of Apple providing carrier services?
    Imagine trying to manage that across 120 countries.
  • Reply 4 of 123
    Apple in "iPhones sell fewer units in second half than in first half" shock scandal ! /s
    mike1watto_cobra
  • Reply 5 of 123
    @sog35 you've had your say, now drop it... I won't let you hijack another thread!

    paxmanmacxpresstmaystevehmwhiteddawson100mike1pscooter63StrangeDaysai46
  • Reply 6 of 123
    irelandireland Posts: 17,547member
    sog35 said:
    ireland said:
    It's an expensive phone. In Europe the phone starts at $825 including 23% tax. $635 excluding tax.

    I reckon if the phone started at €649 instead of €779 it'd be an awful lot more popular for new phone buyers here.
    exactly. And for a phone that looks EXACTLY like a 3 year old phone.

    I mean who the hell does Apple think they are fooling?

    Tim Cook's Apple is so arrogant and so removed from reality it is sickening.
    The way iPhone 7 looks isn't putting people off here. They love iPhones, just most simply can not afford them. For the last three years here the price keeps creeping up.
    schlackcaliavon b7propodmagman1979
  • Reply 7 of 123
    I think the reason Apple extended the iPhone 6 design into the 7 model is because the new design which will be introduced as the 8 was not ready in time for the 7. A lot of people are predicting that 8 will be a radical change in design, materials with some new pony tricks. I tend to hold onto my iPhones for 3 years so I don't really care but I am puzzled by people that upgrade every year for what recently has been minor changes (3D touch) and camera improvements. 
    edited December 2016 icoco3fastasleepwatto_cobra
  • Reply 8 of 123
    mazda 3smazda 3s Posts: 1,562member
    Using DigiTimes as a source is scraping the bottom of the barrel.
    palomineMetriacanthosaurusMacProgilly017stevehRayz2016caliindyfxirelandmagman1979
  • Reply 9 of 123
    Why is this news? Isn't this how all products are manufactured? More during launch, less after launch?

    "News" has become the new way to shape narratives. Traditionally news is what people need or want to know. But modern news has taken on a new form. Articles/headlines are published stating a talking point, and then repeated and repeated and repeated, in an effort to create a certain collective perspective amongst its readership. And it works quite well, on massive scales. Not against all people though. I like to believe that the guys at AI don't do maliciously, they've just learned to do it from the larger pubs.
    edited December 2016 mwhitegregg thurmanStrangeDaysindyfxmagman1979
  • Reply 10 of 123
    sog35 said:
    How is this a surprise?

    Why would people want to buy a phone with a 3 year old design?  I mean seriously. If someone holds their phone for 2 year, this phone will have a 5 year old design at the end of their ownership cycle.

    To release the same phone design THREE YEARS IN A ROW is the height of Apple's arrogance. But that's Tim Cook's Apple for you. The amount of mistakes this idiot CEO has made is ridiculous.

    I hope this iPhone 6SS sells like crap. Hope the stock tanks hard by early 2017. And the board/shareholders wake up and fire Tim Cook. With a competent CEO who actually cares about growing the business and brand (instead of going on some dumb ass social crusade) this stock would be at $200 by now.


    You couldn't be more correct!

    But might I add, it must be difficult to sell an iPhone 7 if about two weeks after you release it Apple begins releasing the manufactured news rumors about the potential iPhone 8. 
  • Reply 11 of 123
    Funny story, I wasn't going to order an iphone 7 until it was available to be shipped the same day. By the time I could do that, I didn't care about getting a 7 any more.

    Bring on the 8.
    [Deleted User]anantksundaramicoco3
  • Reply 12 of 123
    paxmanpaxman Posts: 4,590member
    ireland said:
    It's an expensive phone. In Europe the phone starts at $825 including 23% tax. $635 excluding tax.

    I reckon if the phone started at €649 instead of €779 it'd be an awful lot more popular for new phone buyers here.
    During the Black Friday week I saw 6s's flying of the shelves. No wonder as even the 128 gb was being offered free at Best Buy. Given the option between a free 128gb 6s and an expensive 7 most people will choose the free option in spite of the superior hardware of the 7. This is obviously just my extremely limited observation.
    calianantksundaramirelandwatto_cobra
  • Reply 13 of 123
    ipilyaipilya Posts: 185member
    ireland said:
    Imagine trying to manage that across 120 countries.
    They can start by buying "Free" (free.fr). They are simply AMAZING! But expansion would have to be staged, no doubt.
    cali
  • Reply 14 of 123
    blastdoorblastdoor Posts: 1,889member
    sog35 said:
    How is this a surprise?

    Why would people want to buy a phone with a 3 year old design?  I mean seriously. If someone holds their phone for 2 year, this phone will have a 5 year old design at the end of their ownership cycle.

    To release the same phone design THREE YEARS IN A ROW is the height of Apple's arrogance. But that's Tim Cook's Apple for you. The amount of mistakes this idiot CEO has made is ridiculous.

    I hope this iPhone 6SS sells like crap. Hope the stock tanks hard by early 2017. And the board/shareholders wake up and fire Tim Cook. With a competent CEO who actually cares about growing the business and brand (instead of going on some dumb ass social crusade) this stock would be at $200 by now.


    it seems to me that the difference in physical appearance between the iPhone 7 and the iPhone 6 is in the same ballpark as the difference between the iPhone 5 and 4. True, there was a change in materials between the 4 and 5 and there really hasn't been a big change in materials since the 5, but I don't think the materials matter that much. Also, I actually think the iPhone 7 looks really good. I just don't think this is an issue. 

    If we define "design" more broadly than physical appearance (which I think we should), then the iPhone 7 has a lot going for it. The SOC is far and away the best on the market. The storage speed is phenomenal. The camera is very good -- whether it's the best depends on what you care about. Waterproofing is a good feature. 

    The biggest problem with the design is the omission of the 3.5 mm jack. I think that's really the crux of the bad sales. If AirPods had been released a year before the iPhone 7, and if they worked well and people loved them, then removing the 3.5 mm jack would have seemed like obviously the right thing to do. Instead, they remove the jack, promise these great new wireless earphones, but then delay them indefinitely. There were surveys showing interest in the AirPods running much higher than interest in the Apple Watch. 

    So my theory is that sales are weak because of the audio situation. 
    avon b7
  • Reply 15 of 123
    I think the hype about iPhone 8 also has a part to play. Why upgrade to a slightly better 6S when an all-new super-spec model is apparently around the corner (according to the media). 

    I went 3G -> 5 -> 6S, unless my 6S starts to feel slow or lacking in features compared to the next one, I can see me waiting for an 8S(9). Saying that, both mine and my wife's 6S's are due a recall shortly to fix the die-randomly battery problem so if the "fix" doesn't work I can maybe see an upgrade sooner rather than later.
  • Reply 16 of 123
    blastdoor said:
    sog35 said:

    it seems to me that the difference in physical appearance between the iPhone 7 and the iPhone 6 is in the same ballpark as the difference between the iPhone 5 and 4. True, there was a change in materials between the 4 and 5 and there really hasn't been a big change in materials since the 5, but I don't think the materials matter that much. Also, I actually think the iPhone 7 looks really good. I just don't think this is an issue. 

    If we define "design" more broadly than physical appearance (which I think we should), then the iPhone 7 has a lot going for it. The SOC is far and away the best on the market. The storage speed is phenomenal. The camera is very good -- whether it's the best depends on what you care about. Waterproofing is a good feature. 

    The biggest problem with the design is the omission of the 3.5 mm jack. I think that's really the crux of the bad sales. If AirPods had been released a year before the iPhone 7, and if they worked well and people loved them, then removing the 3.5 mm jack would have seemed like obviously the right thing to do. Instead, they remove the jack, promise these great new wireless earphones, but then delay them indefinitely. There were surveys showing interest in the AirPods running much higher than interest in the Apple Watch. 

    So my theory is that sales are weak because of the audio situation. 
    Isn't the audio situation mitigated by:

    iPhone 7 In the Box
    • iPhone with iOS 10
    • EarPods with Lightning Connector
    • Lightning to 3.5 mm Headphone Jack Adapter
    • Lightning to USB Cable
    • USB Power Adapter
    • Documentation


    edited December 2016 calianantksundaramicoco3yoyo2222pscooter63magman1979fastasleepwatto_cobra
  • Reply 17 of 123
    sog35 said:
    spice-boy said:
    I think the reason Apple extended the iPhone 6 design into the 7 model is because the new design which will be introduced as the 8 was not ready yet. Which makes most people are predicting that 8 will be a radical change in design, materials and some new tricks. I tend to hold onto my iPhones for 3 years so I don't really care but I am puzzled by people that upgrade every year for what recently has been minor changes (3D touch) and camera improvements. I see no reason for it but then again I live debt free, pay my cc bill in full each month and don't shop because I am bored. 
    I told am holding a 3 year old phone the 6+

    I see ZERO reason to buy the 6s or the 6ss. 
    Ok. All you ever [email protected]$king do is complain. Like if something from Digitimes can be totally trusted. I'm sure someone like you would want a completely new device every year. See how that is working out for Samsung. Let's see what the 8 looks like before we count Tim out. Same crap every year Apple is doom. 
    mwhiteStrangeDaysicoco3magman1979watto_cobra
  • Reply 18 of 123
    schlackschlack Posts: 683member
    ireland said:
    It's an expensive phone. In Europe the phone starts at $825 including 23% tax. $635 excluding tax.

    I reckon if the phone started at €649 instead of €779 it'd be an awful lot more popular for new phone buyers here.
    In the USA it starts at $650 bf tax (although tax is less) and maxes out around $1,000 bf tax!
  • Reply 19 of 123
    sog35 said:
    exactly. And for a phone that looks EXACTLY like a 3 year old phone.

    I mean who the hell does Apple think they are fooling?

    Tim Cook's Apple is so arrogant and so removed from reality it is sickening.
    Arrogant? This coming from a guy who is acting like Apple owes him phones!
    stevehmwhiteMikeymikeStrangeDaysgilly017mike1andrewj5790magman1979watto_cobra
  • Reply 20 of 123
    blastdoorblastdoor Posts: 1,889member
    blastdoor said:
    sog35 said:

    it seems to me that the difference in physical appearance between the iPhone 7 and the iPhone 6 is in the same ballpark as the difference between the iPhone 5 and 4. True, there was a change in materials between the 4 and 5 and there really hasn't been a big change in materials since the 5, but I don't think the materials matter that much. Also, I actually think the iPhone 7 looks really good. I just don't think this is an issue. 

    If we define "design" more broadly than physical appearance (which I think we should), then the iPhone 7 has a lot going for it. The SOC is far and away the best on the market. The storage speed is phenomenal. The camera is very good -- whether it's the best depends on what you care about. Waterproofing is a good feature. 

    The biggest problem with the design is the omission of the 3.5 mm jack. I think that's really the crux of the bad sales. If AirPods had been released a year before the iPhone 7, and if they worked well and people loved them, then removing the 3.5 mm jack would have seemed like obviously the right thing to do. Instead, they remove the jack, promise these great new wireless earphones, but then delay them indefinitely. There were surveys showing interest in the AirPods running much higher than interest in the Apple Watch. 

    So my theory is that sales are weak because of the audio situation. 
    Isn't the audio situation mitigated by:

    iPhone 7 In the Box
    • iPhone with iOS 10
    • EarPods with Lightning Connector
    • Lightning to 3.5 mm Headphone Jack Adapter
    • Lightning to USB Cable
    • USB Power Adapter
    • Documentation


     The adapter is a Band-Aid solution to a self-inflicted wound.  It is better to have a Band-Aid than not have a Band-Aid; but even better not to inflict the wound in the first place. 
    anantksundaramavon b7baconstang
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