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Jan. 5, 2016, 2:23 p.m. EST

Apple suppliers rocked by report of plan to cut iPhone 6s production

Nikkei says weak sales have spurred Apple to cut output by about 30%

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By Ciara Linnane, MarketWatch


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Apple Inc. is expected to reduce production of the latest version of the iPhone 6 by about 30% in the January-to-March quarter as compared with its original plan, Nikkei reported Tuesday, without citing sources.

The move would mean lower orders for suppliers in Japan and South Korea, the Japanese English-language publication said. Apple had initially told suppliers that production of the iPhone 6s and iPhone 6s Plus would remain at the same pace as the preceding comparable models, the iPhone 6 and iPhone 6 Plus.

But inventories have built up at retailers in China, Japan, Europe and the U.S. amid relatively weak sales, said Nikkei. It attributed the weakness to the stronger dollar, which sent prices higher in emerging markets, as well as customer perception that there was little technical advancement offered in the newer models.

Don’t miss: Acquisition ideas for Apple in 2016

Production is expected to return to normal in the April-to-June quarter, Nikkei reported.

The news weighed on suppliers in the U.S. and overseas, with Avago Technologies /zigman2/quotes/200646538/composite AVGO -1.38%   down 2.5%, InvenSense Inc.  down 2.9%, Cirrus Logic Inc. /zigman2/quotes/208789077/composite CRUS +1.24%   off 4.6% and Skyworks Solutions Inc. /zigman2/quotes/201417573/composite SWKS -3.79%   down 5.1%.

Japan Display Inc. /zigman2/quotes/204799605/delayed JP:6740 -2.04% fell 1.2%, Sharp Corp. /zigman2/quotes/203224600/delayed JP:6753 +2.34%  shed 1.6%, LG Display Co. Ltd. /zigman2/quotes/204226570/delayed KR:034220 +1.69%  was down 0.4%. TDK Corp. /zigman2/quotes/209010840/delayed DE:TDK +3.70%  was down 1.8%.

Apple shares /zigman2/quotes/202934861/composite AAPL -1.37%   fell 1.6%, while the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.57%   was down 0.1%.

Read: 2016 predictions: The six tech trends that will rule

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$ 445.85
-6.22 -1.38%
Volume: 1.82M
Jan. 15, 2021 4:00p
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70.77
Dividend Yield
3.23%
Market Cap
$180.35 billion
Rev. per Employee
$1.14M
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/zigman2/quotes/208789077/composite
US : U.S.: Nasdaq
$ 98.76
+1.21 +1.24%
Volume: 481,042
Jan. 15, 2021 4:00p
P/E Ratio
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Dividend Yield
N/A
Market Cap
$5.72 billion
Rev. per Employee
$887,820
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/zigman2/quotes/201417573/composite
US : U.S.: Nasdaq
$ 152.00
-5.98 -3.79%
Volume: 2.31M
Jan. 15, 2021 4:00p
P/E Ratio
31.72
Dividend Yield
1.32%
Market Cap
$25.24 billion
Rev. per Employee
$335,570
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/zigman2/quotes/204799605/delayed
JP : Japan: Tokyo
¥ 48.00
-1.00 -2.04%
Volume: 6.20M
Jan. 19, 2021 3:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
¥40.62 billion
Rev. per Employee
¥57.18M
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/zigman2/quotes/203224600/delayed
JP : Japan: Tokyo
¥ 1,928.00
+44.00 +2.34%
Volume: 6.16M
Jan. 19, 2021 3:00p
P/E Ratio
77.86
Dividend Yield
0.93%
Market Cap
¥1174.04 billion
Rev. per Employee
¥42.95M
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/zigman2/quotes/204226570/delayed
KR : S. Korea: KRX
21,000.00
+350.00 +1.69%
Volume: 3.53M
Jan. 19, 2021 3:30p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
₩7532.02 billion
Rev. per Employee
₩880.39M
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/zigman2/quotes/209010840/delayed
DE : Germany: Frankfurt
140.00
+5.00 +3.70%
Volume: 10.00
Jan. 19, 2021 12:54p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
N/A
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/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 127.14
-1.77 -1.37%
Volume: 111.60M
Jan. 15, 2021 4:00p
P/E Ratio
38.92
Dividend Yield
0.64%
Market Cap
$2138.91 billion
Rev. per Employee
$1.86M
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
30,814.26
-177.26 -0.57%
Volume: 440.02M
Jan. 15, 2021 5:18p
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Ciara Linnane is MarketWatch's investing- and corporate-news editor. She is based in New York.

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