Apple to Cut iPhone 6s and 6s Plus Production by 30% in Q1 2016

[MacRumors]

Apple will cut production on the iPhone 6s and 6s Plus by approximately 30 percent in the first calendar quarter of 2016, reports Nikkei. Citing lackluster sales, Nikkei says iPhone 6s and iPhone 6s Plus inventory has "piled up" at retailers across the world, leading Apple to scale back production from January through March to get rid of excess stock.

Apple is said to have originally told its suppliers to continue Q1 2016 production of the iPhone 6s and iPhone 6s Plus at the same rate as the iPhone 6 and iPhone 6 Plus a year prior, but waning sales led the company to change its plans.

It is not unusual for Apple to scale down device production as an iPhone matures, but the rumored 30 percent cut from January to March is being positioned as an abnormally large production drop.

But inventories of the two models launched last September have piled up at retailers in markets ranging from China and Japan to Europe and the U.S. amid lackluster sales. Customers saw little improvement in performance over the previous generation, while dollar appreciation led to sharp price hikes in emerging markets.

Downscaled production is only expected to last through March as dealers sell through their current stock, with orders returning to normal during the April-June quarter after Apple's inventory adjustment has been completed.

Apple's production cut will impact parts suppliers in Japan and South Korea, including Japan Display, Sharp, LG Display, Sony, TDK, Alps Electric, and Kyocera. Following Nikkei's report, Apple stock has fallen two percent and hit a low of $102.41 earlier today.

Article Link: Apple to Cut iPhone 6s and 6s Plus Production by 30% in Q1 2016

 

[exodiusprime]

I'm still using an iPhone 6 Plus, but (for those using a 6S) was Force Touch and a better camera vast improvements for you to have upgraded? And how's the extra RAM helping you?

 

[Traverse]

Well, let's be honest. People on these boards can appreciate the technology behind 3D touch, the A9 chip, and camera, but the masses really don't care. I can't think of a single person that was like "oooh, I need 3D touch." The masses need something more flashy and tangible. Though, that is just my opinion.

3D touch, the A9, and the camera add to the experience, but they don't substantially improve/change it like a larger screen or a new design. I anticipated lackluster response, but what do I know.

 

[freepomme]

I'm still using an iPhone 6 Plus, but (for those using a 6S) was Force Touch and a better camera vast improvements for you to have upgraded? And how's the extra RAM helping you?

Not at all. The battery in this is smaller, um, basically this was just to have the latest.

Having the latest is a novelty you know.

 

[Karma*Police]

Nikkei didn't cite any sources for their information so their article seems pretty sketchy... The relatively modest drop in Apple's stock price seems to reflect investors' skepticism.

 

[KPOM]

This is why the stock is down today after being flat yesterday (amid the broader market selloff). All eyes will be on Apple's forecast on January 26. The 6S to me is much better than the 6, but I can see why it is difficult to top last year's sales, since there was pent-up demand for a larger iPhone.

Nikkei didn't cite any sources for their information so their article seems pretty sketchy... The relatively modest drop in Apple's stock price seems to reflect investors' skepticism.

To be fair, the stock is down considerably from its high of 134 in July. A lot of "bad news" has been priced into the stock. Hopefully Apple surprises to the upside in a few weeks. Notably, they have not changed their guidance.

 

[Ballis]

Design as horrid as last year, marginal performance improvements, gimmicky 3D touch feature and even worse battery. Least exciting update to date.

Jony Ive in particular needs to step it up.

 

[mw360]

The 6 sold too well. All that pent-up demand for the bigger screen couldn't be matched this time around.

Or maybe the 6s is just too thick.

 

[nightcap965]

Oh, waily, waily, the end is nigh! Apple is doomed. Dooooooooomed!

 

[nfl46]

The iPhone is a flop, even Blackberry outsold the iPhone. /s

 

[brofkand]

I'm still using an iPhone 6 Plus, but (for those using a 6S) was Force Touch and a better camera vast improvements for you to have upgraded? And how's the extra RAM helping you?

I have a 6 and just got a 6S in last week. I'm returning it. The extra RAM does not affect my usage and the camera is not what I'd call a vast improvement. Live Photos and the front facing camera flash are software upgrades and should have been part of iOS 9 for iPhone 6 users at least, but they're gimmicks to me. I've not yet seen force touch to be worthwhile. Hoping the 7 is a worthwhile upgrade this fall, otherwise I'll keep my 6 for another year. I did the same with the iPhone 4; didn't get another iPhone until the 5S.

 

[BMcCoy]

Agreed.
The 4s and 5s remain the two best iPhone releases so far.
We were hopeful with the 6s, but it's just not the phone we're looking for..

Let's hope the 7 is planned to be something awesome!

 

[psylence2k]

Not at all. The battery in this is smaller, um, basically this was just to have the latest.

Having the latest is a novelty you know.

So you dont know any difference with the Ram ? Do you have a 6S or 6S Plus ?

I was thinking about getting the 6S Plus and performance improvement from the ram was the main factor.

but there's seems to be a good amount of people here who are saying it's not that much different.

 

[Oblivious.Robot]

Or maybe the 6s is just too thick.

I concur, iPhone needs to be thinner!

 

[Traverse]

If this isn't the first year that the new iPhone outsells the previous, ooh the stock will take a hit no matter how many millions of units sold.

 

[bushido]

good, now drop the price and release something mind blowing again. theyve been sitting on their comfy high horse for too long

on the software side ... i am afraid people got used to doing certain things one way and arent gonna learn a new way e. g. "spotlight search" or "3d touch". i keep forgetting either is there cuz i am so used to just tapping on an icon from my springboard

 

[cmichaelb]

I'm still using an iPhone 6 Plus, but (for those using a 6S) was Force Touch and a better camera vast improvements for you to have upgraded? And how's the extra RAM helping you?

I'm loving the 6s plus. The camera is outstanding, the RAM change is very noticeable when using safari. Force touch is great ,does take some getting used to to press the screen harder than you are used to. 2nd gen touch ID is awesome.

 

[justperry]

It's just too pricey, I can easily afford to buy an iPhone 6S but I won't because over the years buying a new iPhone got more and more expensive.
€750 for a 16 Gb 6S is just too much.

 

[Traverse]

I'm loving the 6s plus. The camera is outstanding, the RAM change is very noticeable when using safari. Force touch is great ,does take some getting used to to press the screen harder than you are used to. 2nd gen touch ID is awesome.

The 6/6S cameras are what drove me to get a DSLR. The photos look amazing on the screen, but you zoom in at all, any fine detail is lost to noise reduction. I'd rather have snowy details than blotchy smoothness.

The RAM and Touch ID though should be HUGE improvements. My iPad Air 2's ram is incredible. I always have that app anxiety when I leave a game or safari to do something in another app for even a moment on my iPhone 6, which shouldn't' be the case for a premium smartphone. Since Touch ID is how you get into your device, the faster the better.

 

[wlossw]

bought the wife a 6s plus to replace her 6 plus... She can't tell the difference... (but I changed from my 6 to her old 6plus and I love it...)

Average folks can't tell the difference between last years and this years model...

 

[Karma*Police]

Well, let's be honest. People on these boards can appreciate the technology behind 3D touch, the A9 chip, and camera, but the masses really don't care. I can't think of a single person that was like "oooh, I need 3D touch." The masses need something more flashy and tangible. Though, that is just my opinion.

3D touch, the A9, and the camera add to the experience, but they don't substantially improve/change it like a larger screen or a new design. I anticipated lackluster response, but what do I know.

I agree but I feel like the masses also upgrade for reasons unrelated to features.... a lot of times because their iPhones are simply old and/or battery no longer lasts as long as they need it to. I've also seen many users upgrade because they could no longer live with a cracked screen.

The extra features, many of which they're unaware of, are simply an added bonus.

 

[ArneK]

I'm still using an iPhone 6 Plus, but (for those using a 6S) was Force Touch and a better camera vast improvements for you to have upgraded? And how's the extra RAM helping you?

I wouldn't say there is a big difference - but when using the 6 again after getting used to the 6s you notice the 6s is a little faster, the Touch ID is a little better in recognising my fingerprint, the camera is a little better, the battery seems to last a little longer (which doesn't really make sense I guess) and most important - it feels way more stable (including the screen! especially when accidentally dropping it). I wouldn't like to go back, but I can see how many people hesitate to spend so much money on such minor improvements.

 

[joeblow7777]

It's funny, a new iPhone comes out and it's a pain in the butt to get one for the first couple of months because supply doesn't meet demand. 2 months after that and there's piled up inventory. If they could send all these extra units back in time to September/October it would (retroactively) make a lot of people very happy.

 

[Traverse]

I agree but I feel like the masses also upgrade for reasons unrelated to features.... a lot of times because their iPhones are simply old and/or battery no longer lasts as long as they need it to. I've also seen many users upgrade because they could no longer live with a cracked screen.

The extra features, many of which they're unaware of, are simply an added bonus.

I absolutely agree. The only thing is that many of those people who upgrade because of a cracked screen or bad battery don't get the newest flagship model. I know several people (anecdotal evidence means nothing, but still) that went with the 5S or 6 vs the 6S just for price.

Still, one thing Apple has going for it is that "new iPhone" hype. I don't know how much longer it can sustain, but many people upgrade just to upgrade.

 

[chris.robison]

I'm still using an iPhone 6 Plus, but (for those using a 6S) was Force Touch and a better camera vast improvements for you to have upgraded? And how's the extra RAM helping you?

I upgraded from a 6 to a 6s Plus just before Christmas. I upgraded mainly for the Plus parts and not the s parts. I am digging it a lot actually. 3D touch sounded dumb but I actually use it frequently and would love more uses for it. It's great to preview links and images in Tweetbot for example and it makes the experience feel faster. The speed boost from the new A9 is really nice too. Everything is really quick. That might be the real winner. Didn't it get a better display too? At least compared to my 6 the screen is quite nice. Seems color and clarity are even better.