Apple cuts smartphone production again

iPhone SE smartphone

Now they’ve seen the Apple’s iPhone SE, consumers don’t appear to be impressed. The Silicon Valley giant has cut production of its latest smartphone, according to reports.

The Nikkei Asian Review says Apple will continue its already reduced output of iPhones in the April-June period in light of sluggish sales. It cited information from unidentified parts suppliers notified of the plan.

Production cuts

The company lowered production for the January-March quarter by about 30 per cent from the earlier period, the publication said. With sales still sluggish, the company has reportedly told parts suppliers in Japan and elsewhere that it will maintain the reduced output level in the current quarter.

The Cupertino-based company has reportedly seen slow sales of its flagship iPhone 6s and iPhone 6s Plus. The new iPhone SE has been seen as part of a strategy to revive smartphone sales. Taiwan Semiconductor Manufacturing, one of the biggest suppliers of chips to Apple, last week said that demand for smartphones that cost more than $500 (Dh1,836.48) is waning, and forecast that revenue would fall below analysts’ estimates for the second quarter, Blooomberg reported.

The SE is available from Dh1,649 at the UAE Apple store.

Waiting for the 7

Analysts believe consumers are waiting for Apple’s next smartphone, the iPhone 7. Scheduled for release this September, the new phone is expected to be waterproof, feature dual cameras and wireless charging.

“Ahead of the iPhone 7 people are holding onto their phones a little longer,” said Walter Piecyk, a New York-based analyst at BTIG told Blooomberg. “But if this is as a result of lengthening product cycles then it could be a structural change for the industry.”

In January, Apple warned revenues would fall in the first quarter of this year, but did not offer advice on the rest of the year.

Will the iPhone 7 see a rise in production?