Slower-than-expected iPhone 7 sales prompt Apple to cut production by 10%, report claims
Apple's new iPhone 7 lineup has "sold more sluggishly than expected," according to a new report, which claims that the company has cut orders for early 2017 by some 10 percent.
![](https://apple.insidercdn.com/gallery/19560-20222-19539-20166-18316-16841-7BlacksCamera-l-2-l-l.jpg)
Citing data from Apple suppliers, Japanese newspaper Nikkei reported on Friday that "sluggish sales" of the iPhone 7 lineup have come in softer than Apple expected.
Somewhat confusingly, the report said that Apple plans to cut production of both the iPhone 7 and iPhone 7 Plus. But it also notes that Apple has not been able to meet demand for the 5.5-inch iPhone 7 Plus due to a shortage of camera sensors, noting that the jumbo-sized handset "remains popular."
The report also noted that sales of the iPhone 7 are strong in Japan, particularly due to the Apple Pay in the country in October. However, Japan accounts for roughly 10 percent of Apple's global sales.
The claims come on the heels of a new study on activations showing that rival Samsung gained some ground on Apple this holiday season.
The latest slew of reports stand in contrast to Wall Street expectations, where analysts generally expect the iPhone 7 lineup will propel Apple to its best quarter ever. Apple will report the results of its holiday frame in late January.
![](https://apple.insidercdn.com/gallery/19560-20222-19539-20166-18316-16841-7BlacksCamera-l-2-l-l.jpg)
Citing data from Apple suppliers, Japanese newspaper Nikkei reported on Friday that "sluggish sales" of the iPhone 7 lineup have come in softer than Apple expected.
Somewhat confusingly, the report said that Apple plans to cut production of both the iPhone 7 and iPhone 7 Plus. But it also notes that Apple has not been able to meet demand for the 5.5-inch iPhone 7 Plus due to a shortage of camera sensors, noting that the jumbo-sized handset "remains popular."
The report also noted that sales of the iPhone 7 are strong in Japan, particularly due to the Apple Pay in the country in October. However, Japan accounts for roughly 10 percent of Apple's global sales.
The claims come on the heels of a new study on activations showing that rival Samsung gained some ground on Apple this holiday season.
The latest slew of reports stand in contrast to Wall Street expectations, where analysts generally expect the iPhone 7 lineup will propel Apple to its best quarter ever. Apple will report the results of its holiday frame in late January.
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Comments
How the hell does this newspaper know there were "sluggish sales"? One thing doesn't necessarily relate to the other.
That doesn't mean it didn't sell record numbers either. Stupid.
Now regarding AppleTV maybe not so much. Even my ISP is now giving them away if I'll upgrade to a faster internet plan, joining ATT and their DirectTVNow promo for a free one (which I just rec'd today). Sling will only sell you one for $89, but still well under Apple's list price.
But the iPhone worries are way overblown. What difference would it make to Apple bottom line if they only sold the same number of them this year as last? Services would easily drive the profits higher despite slowing sales (if they are)
When a product becomes out-of-stock, it creates a situation where the product is "perceived" as more valuable by the consumer.
When people in the press can't purchase it either, then the press will write about it in a more favorable light once the product is obtained as well. This is something carefully balanced by Apple and a part of its branding, marketing, and supply chain strategy.
Look at it this way-
People know when they go to a McDonald's they can get a McDonald's signature BigMac Burger but only Apple would deny its customers the ability to tender a sale. No one in the press writes about how tasty their last BigMac burger was because they are ready for purchase.
It takes a stroke of genius to deny Dieter Bohn his ability to be the first in the office to buy an Apple.
2016 is the year of the S chip, T chip, and W chip. Hopefully Apple will really get the T chip and W chip out in the MacBook and MacMini (via Wired or BlueTooth Keyboards with TouchBar) in 2017.
Every shortage in supply in the month of December is leading to less sales and less profits, the last thing is Apple is trying to achieve.
These Japanese mouth pieces are the absolute worst.