Apple, the iPhone making giant, is reducing production of the iPhone by around 10% in the first quarter of this year, according to Nikkei Asian Review. The daily Japanese publication examined supply chain orders and used data from analysts to report this news. The Japan-based paper believes that the slower than anticipated sales of the latest smartphone of the tech giant will lead to a decrease of output during the first three months of the year 2017.
Apple to scale back production of its flagship handsets
This is not the first time that the Cupertino-based smartphone maker has scaled back production of its flagship devices. The production of iPhone 6S and iPhone 6S Plus scaled back in the first quarter of 2016 due to an abundance of units in the supply chain from over-estimated sales in the fourth quarter.
The popularity of the iPhone SE was in question at that time as well so it made a lot of sense to keep the supply chain as lean as possible so any impressive iPhone SE sales would not lead to stock lying around unsold. The Silicon Valley giant is still bias towards “just in time” manufacturing to decrease the slack between producing a device and selling it.
In addition to this, the tech giant has cut back on the production numbers of the iPhone 7 and iPhone 7 Plus as well for the initial availability of the new devices. This would be down to supply limitations in part because of the dual-lens camera components for the iPhone 7 Plus. But the demand for the iPhone 7 was slow at best.
The sale of the new devices is still strong, but they are not as strong as it was in previous years. As the hardware gains that can be made yearly become less of a tech jump over previous handsets, as smartphone devices iterate themselves closer to a standard feature set and as some changes look more in favor of a manufacturer’s bottom line in comparison to user accessibility, the consumer momentum to keep upgrading to the new device reduces.
Apple’s big release: iOS 10.3
With the ongoing iPhone “30% bug”, the iPhone maker had already too much in its hands, particularly with iOS 10.2 making it worse. Famed leaker Sonny Dickson revealed that the iOS 10.3 will start testing on January 10th. Dickson further added that the release will center on the introduction of a new feature called ‘Theatre Mode’.
Theatre Mode will be added to the Control Center on iPads and iPhones and its icon will be popcorn shaped (which is appropriate). We still do not know how the Theatre Mode will work. The name ‘Theatre Mode’ suggests it could be related to movie playback but the leaker believe that it is going to be a form of enhanced Dark Mode.