By Ciara Linnane, MarketWatch
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.
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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%.