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Apple Said To Cut iPhone Production In Q1: Nikkei

Apple Said To Cut iPhone Production In Q1: Nikkei

Shares of Apple Inc. (NASDAQ: AAPL) were trading lower by nearly 1 percent on Friday following a concerning report from Nikkei Asian Review.

According to the publication, Apple is expected to cut back production of its iPhone devices by around 10 percent in the first quarter of 2017. Citing "data from suppliers," the publication added that the production cut follows an already reduced output throughout the first three months of 2016 following high inventory levels of the iPhone 6s at the end of 2015.

Even though Apple cut production in 2016, sales of its iPhone devices still sold poorly.

At the same time, Apple could also be facing issues with its supply chain. The company's larger screen iPhone 7 Plus continues to sell well, but a shortage of sensors for the camera plagued Apple's production and its ability to keep up with global demand.

Investors paying close attention to Apple's supply chain and looking to invest in the company's suppliers should also be cautioned that the report stated that Japanese component suppliers "will again feel pain from the coming cuts." Orders placed by Chinese smartphone makers and technology related to autonomous driving will only "soften the blow" for the many Japanese component makers.


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