Apple To Cut iPhone Production By 10% In The First Quarter Of 2017: Nikkei

Tyler Durden's picture

If there is one company that wishes 2016 could be as quickly as possible put away in the history books, it was Apple: with the Apple watch now a confirmed dud, the iPhone 7 a bust relative to Apple's other offerings, demand for Apple's once brilliant creations waning, and the first recorded declines in both iPhone sales and earnings, 2016 was a year Tim Cook would love to never repeat. Alas, according to Japan's Nikkei, 2017 is set to begin with a whimper, not a bang, as Apple will trim production of its iPhones by at least 10% in the first quarter of 2017.

The latest disappointing news comes after the company slashed output in January-March 2016 due to accumulated inventory of the iPhone 6s line at the end of 2015. That experience led Apple to curb production of the iPhone 7, introduced in September, by around 20%. But the phones still have sold more sluggishly than expected. Information on production of the latest models and global sales suggests cuts in both the 7 and 7 Plus lines in the coming quarter.

The larger iPhone 7 Plus, which features two cameras on its back face, remains popular. But a shortage of camera sensors has curbed Apple's ability to meet demand for the phones. U.S. research company IDC forecasts global smartphone shipments in 2016 on par with the 2015 level. Even Apple has had difficulty creating appealing new features, stifling demand from customers who otherwise would look to upgrade to the latest device.

The Nikkei notes that while Japanese demand for the iPhone 7 line is strong, thanks in part to the phone's compatibility with contactless IC chip readers, commonly used for services such as payment. Japan makes up just 10% or so of the global smartphone market, and cannot compensate for sluggishness overall.

Japanese component producers will again feel pain from the coming cuts. But orders from Chinese smartphone makers, as well as growing demand for automobile technology linked to automated driving, will soften the blow. A source at a major parts producer called Apple's production cut "within expectations," saying the company has reduced the role Apple plays in its overall business.

For those expecting the same pace of growth out of Apple they have been used to for the past few years, that last statement is the last thing they wanted to hear.

In response to the news, AAPL stock has dropped to intraday lows.

AAPL

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Looney's picture

 

Apple should start making old-fashioned analog Rotary Phones.   ;-)

Looney

Canadian Dirtlump's picture

They need to make a modern day M A S H phone with backpack. That way hipsters can wear them while riding their fucked up old fashioned bikes with the massive front wheel and the babydick back wheel with their monocles in.

Apparently the corpse of hotlips was recently reanimated and she's working ( judging by the anti trump commercial she helped cut ).

Looney's picture

and the babydick back wheel

What a gem!   ;-)

Looney

Kotzbomber747's picture

Hehe, seems like Apple's ploy to screw the consumer even more by removing the headphone jack (and thus forcing them to buy adaptors or ridiculously expensive new earphones called AirPods) has backfired massively. The consumer says FUCK YOU Tim Cock!

Mr.Sono's picture

How many iPhones will be there? Before new cool thing will come out.

DetectiveStern's picture

There won't be a "cool" smartphone until someone can make one with a new genuinly impressive feature. Smartphones have got to the point where they are good enough for what most people use them for. I can't see a new phone with just upgraded screen, camera etc will generate the buzz new phones used to. I think price is going to be the bigger battleground rather than being able to rely so much on the product.

For me the future of them seems to be the software they host and the bad news for Apple is Google is smashing them in this department. I'm not a fan of the data mining service technology has become but morality forgotten Google are better at it.

Raffie's picture

Good for them, never liked Apple products any how.

monk27's picture

To quote a famous movie character: "It smells like... VICTORY !"

buttmint's picture

Looney...even better...old style phones easily hacked with a whistle from a box of Cap'n Crunch. Apple's early electronic forays were into devices to mimic and NOT PAY for long distance calls. Yes..."ripping off Ma Bell" was a 70s phrase that conjured up Apple's early biz model, prior to Apple I

SomebodySpecial's picture

Hey butthead...you are full of Cap'n Crap!

Whistles couldn't hack old style phones. It was a place in time. The switches responded to tones but the old style phones were still doing pulse.

John just stumbled on the magic to tie up the country...caught and convicted then hired by the fbi.

John Draper aka capt'n crunch...who made a boatload of money "porting" his Easy Writer to IBM's first box.

John and I used to exercise together on the Big Island...he lived just up the street.

So...if you fucked that part up so much...what's to believe of the second half?

Yup...just a boatload of Capt'n Crap.

Moe Hamhead's picture

Hmmm, are we saturated yet?

Id fight Gandhi's picture

Very. Any new $100 or less phone does at least 95% of the features the flagship phone does.

 

orangegeek's picture

time to ishort / isell

edifice's picture

Yes. Apple's entire product line is shit. They have all but abandoned the pro market (Mac Pro not updated in 3 years, MacBook Pro with basically no ports and useless touchbar, etc.), have killed their wireless routers which received some of the highest consumer ratings in the industry, and the overall manufacturing defects are becoming glaringly obvious.

DEMIZEN's picture

mac pros and airports were great i still have some, but i guess they were not creating revenues.Everytime they roll out an osx security update it mesess up half of my drivers, mac book pro without usb is a joke, you cant even hook up a generic mouse or bamboo pad, it was pretty and all thin and shiny but usb express card kept crashing i had to take it back and buy an old one (2012)

Skateboarder's picture

I know your pain.

2012 model was the last good one, before they fvcked it with "everything soldered on the motherboard." Yeah, I don't mind those extra four millimeters of thickness or whatever, and boo-hoo, my machine weighs a pound extra - poor me.

My high-end 2012 workhorse ($2700) for the last four years died around Halloween and I went right out and got another lower-end 2012 model. 4GB to 16GB upgrade (did it myself)... $80. Came with their shitty "improved" El Capitan OS, which does not co-operate with Parallels 8 that was running beautifully on the Mountain Lion on the previous machine (have contributed a lot of IP and done a lot of product-design using the virtual machines facilitated by that software).

New Parallels is a subscription-based model. Y'all shit-eaters can fvck right off with your scams - I'm sticking to the 8 that I already paid for.

"Downgraded" the thing back to Mountain Lion and we're all good. USB ports, CD-drive (yeah, I still have a shitload of skate videos and some music concert DVDs I'd like to watch or convert to digital), PHYSICAL power push-button...

buttmint's picture

Skateboarder...did you clear outta India okay? Or still in Mother India?
Yes..i did same as you...when Apple announced the were stripping out various ports and SuperDrive's...that is exactly what I bought.
Jonny Ive is too infatuated with his minimalist sense of design to tolerate ANYTHING pragmatic.

Essentially Apple took a successful Swiss Army Knife and removed all the cool blades, etc.. Then wondered why they stopped selling.

Here's why: Apple is ensconced in Silicon Valley, which is one if the wealthiest locales on earth. Problem is CONVERGENCE....all the MacBooks are ending up the SAME.

The missing headphone jack oughta be brought back in iPhone 8. The smartphone of future is Windows Surface. MS is now the lean, scrappy innovative counterpart to bloated Apple.

Skateboarder's picture

buttmint, Mon'Amie - I'm still in the Mother Ind-ja. Cash woes are slightly easing, and though the newspaper front-page assault of PayTM et al. have slowed or ceased, the teevee ads are still going strong, and ads on bank ATMs and streets are still up. Going back home soon, can't wait. Mumbai gave me a nice extended cold/infection a couple weeks back - just now getting better. Got no exercise last couple of months - need to pay a visit to Bangalore and say bye to the great skate crew there.

---

Regarding the great Swiss Army knife that old Macbooks were... totally. Until I joined my last workplace (pragmatists, extremely experienced engineers (30+ yrs) doing board-level design) - I hated Apple with a passion. That 2012 workhorse was what convinced me Apple had some good shit to offer. Would have never entertained the thought of owning a MacBook, and I have used other virualization tools: VMWare and VirtualBox, but I like Parallels way better. Those bastards really did nail it.

Running WinXP (firefox open), two Ubuntus (firefoxes open), and Office on native Mac, Mail, Firefox on native Mac... all at once... the little summabitch pulled it off!

Convergence... yes! Do you notice ALL the new MacBook offerings look exactly like one another? There's no difference anymore among any of them. Oh, and $3000+ for irreplaceable parts and a stupid touchbar? Fvck off, scvmbags.

Getting rid of the 3.5mm jack is utter stupidity. We have enough bzzzzzt bzzzzt wirel-bzzzzt-ess signals frying our brains. Putting bluetooth buds in your ear has got to be the most retarded thing you can do. Go ahead and fry your brain some more, Jonny Ive - it's already nice and toasted anyway.

Apple - reminds me of that Back to the Future quote regarding flushing everything down the toilet.

squid's picture

Running a Dell M4600 presicion work station I got in 2011....

had the keyboard replaced as I bang too hard when I type....

Running Gentoo Linux, x64, 32GB ram and a brand new 750G HDD as the original borked just before christmas.

If I can weasel it, i will install a 128G SSD into the WWAN slot since that's not installed.

 

The USB2 ports are getting a bit shakey but the machine is solid. Its getting a bit too heavy for me but it still hwals-ass.

 

Running Xfce4 of the desktop as I want to avoid the Gnome3 and KDE4 bloat.

 

Question:

What does Ubuntu mean in Swahili?

 

Answer:

Gentoo is too hard for me.

 

We have an Apple fan boy int he office, has convertered a few people and every few months he walks back into the office with another failed Mac Laptop of some sort. Shake my head.....

 

:)

Squid

DEMIZEN's picture

same same.. never ending maze of driver and compatibility mess. I depend on a lot of peripheral 3rd party stuff and every security update turns into a nightmare. There is couple of alternatives to parallels,  one is virtualbox and another one is vine.. but likely with less options, flexibility and harware support. my forex software works ok on virtual box and vine

i say fuck subscription and downgrade.I wiped my boot partition as you did to 10.7, then put a desired osx like 10.9 or 10.10 on a bootable usb drive and upgrade from the usb by hitting an option key and choose usb as boot. Installed system from the usb and voila. Thats how I managed to get from 10.11 back to 10.10 or 10.9

Id fight Gandhi's picture

Mac pro has not seen an update or price decrease in 3 years. That's like a huge amount of time in computerland when prices fall and performance doubles every 18mo.

 

edifice's picture

I have an original Mac Pro 1.1. It now runs Windows 10, since I can no longer hack the EFI to run the lastest MacOS.

DEMIZEN's picture

smart move, i assume you used bootcamp drivers to get it going. you could hack efi with pike boot, btw

Skateboarder's picture

And they raped my hometown of Cupertino, CA. Used to be a nice lil' place.

WillyGroper's picture

4 defective GPU's in 3 computers with another fix'n to die.  AAPL hiding behind the "green meme" with some BS non-lead solder.  far greener to pitch the machine on a 3rd world country in the hopes that the dopes will buy another.

that's a business model.  needless to say, at least 2 class action suits they lost.

i used to really like their machines until the quality & perpetual reinvention of the wheel with OS did nothing but aggravate the shit out of you.  nothing more than rearranging the deck chairs on the titanic sinking in the sea of idiocracy.

i for one am thru with their shennanigans.

not another dime from me.

Skateboarder's picture

In finding out what the hell went wrong with mine, I researched the shit out of all the failure cases and modes, not knowing if it was GPU-related or a motherboard-fry.

Came across this very interesting page that I'd like to pass along to you:

https://people.cam.cornell.edu/~zc227/extras/early2011mbp_graphics.html

Might be exactly what you faced. High temperature swings combined with Pb-free solder on BGAs that actually need it = brittle solder joints. All it takes is for one crack on one via/trace-joint somewhere, and everything is fvcked from there forward.

Allen_H's picture

I do heavy graphic work, and I will never use iShittle, I run an AMD64 desktop PC that I build and update myself. Every time I go somewhere to work, I ask for PC if I have the choice, luckily most do, but they still run old or unkept systems. Fuck apple, flaming piles of shit.

Never buy a pre-built system.

WillyGroper's picture

yup.  seen it.  my MBP was a 17" 2008 along w/Imac 2011 & 2012.

all the same problem.  took the 2011 imac to the vagenious bar 7 times b4 i finally took a video of the screen looking like a strobe lite & raising hell w/tier 2.  they fixed it, long out of warranty.  maybe the techs didn't know due to compartmentalization, but i guarantee management did.  since i'd brought it in repeatedly...high heat & fans revving up, they had a long record of what the vageniouses couldn't find. 

i've seen you can take a heat gun or put the gpu in a 400 oven for 8 min to remelt their shitty solder with over an 80% success rate.  i have to assume the success's were due to the gpu not getting fried with the hi-opn on the chip itself.  took the dead mbp & did it along with new thermal paste on the heat sync, but hosed up a micro connector ribbon in the process. 

the work around is way past my skill set, but if i can re-terminate the micro-con, i may give it a shot.   it's already dead, so wth.   the 2012 imac i'd brought in numberous times for the same thing but symptoms were different.  as the solder started deter,  the speakers would pop, weird thing is it was clocked...every hour on the hour, until it too died.  again, because they had a long record at the vagenious bar, they fixed it out of warranty.  in less than a year, a water mark has appeared, so it's just a matter of time.

what makes this moaty biz model much more nefarious,  you can't get parts cuz they're vintage or obsolete.  take a look at the age of the refurbs on newegg.  you know full well, they've got parts, selling new computers with the same problem & using the "recycle" plan for rehab/resell to reap primo profits.

AAPL has evolved into MSFT.   loved my mac, but the echo of getting reamed so many times is hurting my ears. WAO...;) 

linux will be my next stop.

ps: if you have a new one starting to act up,  run the shit out of a gpu test 24/7 till it fails...get a new one.  rinse, repeat.

Skateboarder's picture

Excellent post, friend.

Thorughly blood-boiling problems! Nothing hurts more than different failure modes at different points in time.

Totally agreed re. the scamming biz model - what a great way to rake in money from unsuspecting commoners. Anyone with some technical knowledge will delve into the details like you and I have, and find out the ugly truths, and boy they are ugly.

Can't blame you for going back to PC land - used to be a Linux-only user for quite a while before I started using Apple at work, and liked it enough to keep going with the 2012 model. *knock on head* (wood) Hope this new machine lasts a good 4-5 years. WinXP on Parallels without bloatware is magical. I refuse to grow out of WinXP and Ubuntu 10.04.

Seasmoke's picture

Apple is in trouble. Apple Watch = Desperation !!!!

Farmerz's picture

Wife just had to have one of those when they first came out, what a piece of shit, all you do is charge it.

Allen_H's picture

I thought that was far beyond desperation. haha

Catullus's picture

"Hey we can't produce enough of these to meet demand for the camera. Let's curb production," said the subpar management team.

DEMIZEN's picture

two eyed camera is huawei's invention. apple phones lost edge long time ago.The lost a large share in consumer electronics. I still use apple computers for front and dedicated stuff, with ubuntu as central server. but with latest windows gui being laid over linux and ubuntu slowly getting access to SDK kits apple will face a lot of challeges in mid term. 

If market share will be driving stock price id short it.

Vardaman's picture

Only 99% more to go...  Hipsters and smug assholes hit hardest.

Snípéir_Ag_Obair's picture

how are they doing relative to Samsung or HTC or Microsoft?

The watch was dumbfuckery ab initio at that price.

But they still make better computers, software, and handhelds than pretty much anyone else. Sorry. But they do.

Their challenge is getting prices down (Samsung is giving better value for average users) and penetrating deep into Asia's long warm birth canal.

Dont get me wrong, the fan boys are irritating, but that doesnt justify hyperbole in the other direction by people who don't know even the basics of the tech.

the os and hardware are great (did not like the new ear buds cant keep ripping off your 'base').

Desktop wise, you are a cunt if you still have a PC.

of course, you are a cunt if you have a desktop at all, but still...

I will say Apple does need to rethink the walled garden approach to iOS, or spin off some cousin version to let people play with.

Also fire Tim Cook - guy is a politician not a ceo.

...

Happy New Year, to all you freak bitches!

Vardaman's picture

Their business model is selling over-priced walled garden hardware and software to people who are willing to pay too much.  If you see them desperate  enough to commoditize it, it will be SELL TIME...

MisterMousePotato's picture

"But they still make better computers, software, and handhelds than pretty much anyone else. Sorry. But they do."

You guys just never learn, do you?

I thought you people would finally just shut up and go away when Apple dumped the Motorola chips for Intel ("none of that cheap PC hardware in my computer, no Sir!" Etc.).

But, no. Bet you were one of those "Netscape makes pretty good browsers" types.

Macs suck. Always have and, because of people like you (and there are a lot), they always will.

DEMIZEN's picture

If you had the latest chinese flagship phones in your hand, youd undestand that apple has zero chances taking their ishit to asian markets.  They also cut come with very sleek android stock and are superfast and clutter free. Their 2017 cameras are superior to iphone 7s huawei knockoffs. 

 

The supply problem is a laughable excuse and just another publicity stunt for their retarded base. Admitting  they are no longer cool, would send their sales into a death spiral

Hongcha's picture

Up arrowed for the Latin and for traditional spelling of bitches.  Disagree re PCs ... I won't do my business George Jetson-style.  I want a landed PC with a big screen that stays in my fuqcking office when I go home.  Have had enough obeying electronic signals.

GraveDancer's picture

Demand destruction happening at pre-WW1 scale!

Book> The Road to World War III: "Can the dark forces of anti-freedom "Trump" humanity?"

Kindle>
https://www.amazon.com/Road-World-War-III-anti-Freedom-ebook/dp/B01MT31A...

TalkToLind's picture

Have Steve Wynn put an iPhone 7 in every hotel room.  Bullish!

Vardaman's picture

Can you get a Gideon Bible, or any bible - besides satanic and holy crayon - on the iPhone?

Inthemix96's picture

I have one older brother, and two younger that are nigh on welded to these devices.

The sooner they cut the signal to these insidious devices that stop four fucking brothers having a pint in peace, wont be a day too soon.

I often, and I mean often, think that I have lost touch with reality, and I really dont think its me that is the wrong apple, in the wrong basket of eggs???

I must a medical redemption ticket that no fucker wanted???

Never mind

The three fucking cunts what they are....

Not really mind

;-)

Bunga Bunga's picture

Trump's fault! /s