We’re in a worldwide smartphone sales slump. Even Apple can’t convince more people to buy and has seen slow iPhone 7 sales.
Apple may need to cut its iPhone 7 production by as much as 10 percent in order to ward off slow iPhone 7 sales.
According to Nikkei Asian Review, this will be the second year in a row that Apple has to slice accumulated iPhone inventory, with January – March output slowed down in 2016 to use up iPhone 6 and 6S models.
Apple ordered around 20 percent fewer iPhone 7 models from manufacturers due to that experience, but the data on both current sales and production of the 7 models seem to suggest more cuts are needed to both models despite the popularity and shortages of the iPhone 7 Plus itself (which has had troubles with supplies of camera sensors).
The global slump in sales growth can be seen in IDC’s analysis as well, with the research firm asserting a flat line of no growth through the whole of 2016.
While the uber-fans and tech-lovers of the world have bought Apple’s iPhone 7 and 7 Plus in droves, even the magical tech company from Cupertino can’t seem to move the needle and grow the market, which may be a sign of saturation.
Component producers in Japan and China have already reduced the importance of Apple orders in their business, adding more orders from other smartphone makers from China as well as components for automated driving cars to cover the shortfall.