View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Networks
January 6, 2016updated 31 Aug 2016 10:53am

Apple to cut iPhone 6s orders by 30%

News: Move reportedly results in Chinese suppliers having to lay off staff.

By CBR Staff Writer

Apple is scaling back its orders for iPhones, forcing its Chinese suppliers to lay off employees.

Citing three people familiar with Apple’s supply chain, the Wall Street Journal reported that the company has reduced orders to suppliers, resulting in layoffs and idle capacity at its Chinese suppliers.

The claims are supported by a $12m grant given to Foxconn Technology Group, Apple’s primary iPhone maker, by the city of Zhengzhou to minimise layoffs.

Apple provides suppliers with estimations on potential orders several months in advance, and then adjusts them over time depending on demand and inventory.

Production of Apple’s latest iPhone 6s and 6s Plus models are expected to be reduced by around 30% in the first quarter, even though the company had initially told component manufacturers to keep production of those models for the quarter at a similar level as for the previous versions iPhone 6 and 6 Plus a year earlier.

Production is anticipated to return to normal by the second quarter after the completion of inventory adjustment.

Apple shipped 38 million iPhones in the fourth quarter of last year. The company also slashed iPhone production in 2013.

Content from our partners
How designers are leveraging tech to apply the brakes to fast fashion
Why the tech sector must embrace faster, smarter talent recruitment
Sherif Tawfik: The Middle East and Africa are ready to lead on the climate

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.