The latest iPhone model range (iphone6) production is to be cut by Apple Inc due to mounting inventories Japan’s business review Nikkei has reported – just 1 year and 4months after its initial release date.
Iphone’s have been piling up since the phone’s release.
Reducing production will allow dealers to go through current stock.
Falling sales, a rare holiday break and a government subsidy have been used as reasons for the fall of demand. However the market has been slowing down for Apple as higher quality phones at more affordable prices have increased in popularity by android competitors such as Samsung, Huawei and LG.
The report has caused investors to be worried. Reuters have reported that China’s Foxconn (Assemblers of the iPhone), awarded 82 million yuan ($12.53 million) in subsidies to companies under Foxconn suggesting troubles and shipments have slowed globally.
Unsurprisingly Apple Shares dropped after the report was released.