Apple Allegedly Cuts iPhone 7 Production By 10 Percent Due To Sluggish Sales

It would appear that Apple is having a tougher time than expected selling iPhone 7 models. This is in part due to a backlog of iPhone 6s models, which has supposedly led Apple to cut production of its flagship handset. As the story goes, Apple gave its suppliers a heads up that it will be slashing orders of its iPhone handsets by around 10 percent starting in the first quarter of 2017.

This is according to Nikkei Asian Review, an English-language business journal that says Apple first slashed output of its handsets in the January to March period due to a buildup of iPhone 6s inventory. That led Apple to slow production of the iPhone 7 and iPhone 7 Plus by around 20 percent, but as sales continue to come up short, the Cupertino outfit is looking at scaling production back by another 10 percent in the coming quarter.

Apple iPhone

The report falls in line with a recent observation by Stephen Baker, primary hardware analyst for NPD Group, who noted that Galaxy Note 7 customers mostly stayed loyal to Samsung following the phablet's recall rather than jump ship.

"Most of those who bought or wanted to buy a Note 7 opted for a different high-end Galaxy phone," Baker said. He added that "Samsung was able to fend off other Android competition, and Apple, too, thanks to Apple's own lack of a wowing product this year."

Apple drew criticism over its iPhone 7 launch for not bringing enough new features or innovation to the table. Many viewed the new phones as being minor improvements over their predecessors with little excitement in the way of design changes, save for the controversial elimination of the 3.5mm audio jack.

It is a little difficult to gauge where exactly Apple stands in relation to iPhone sales and related events. Earlier this month, the Supreme Court ruled 8-0 in favor of Samsung in a $399 million patent infringement case Apple filed against the firm. Prior to that, Apple posted its first annual sales decline in 15 years on comparatively sluggish iPhone and Mac sales. Be that as it may, there are reports of Apple still dominating the smartphone market, including one by Strategy Analytics, which says Apple snagged 91 percent of global smartphone profits in the third quarter of 2016. That figure might even be a bit conservative, as another report has Apple snagging 104 percent of all smartphone profits in Q3.