Apple expected the iPhone 7 to sell like hotcakes after the global recall of the Samsung Galaxy Note 7, but now it seems like that is not the case. The iPhone 7 has not been selling well as Apple had hoped and the company has now been forced to take some drastic actions.
According to Nikkei Asian Review, Apple will be cutting down iPhone production by 10 percent in the first quarter of 2017. The Japanese publication believes that the next three months will lead to a reduction of output from Apple because the sales of their latest smartphone have failed to meet their expectations.
This will not be the first time that the company will be scaling back in the production of their patented smartphones. Last year both the iPhone 6S and iPhone 6S Plus saw a scale back in their production because of what Forbes describes as an "abundance of units in the supply chain from overestimated Q4 sales."
The iPhone SE's popularity was also in question at that point, so it made a whole lot of sense for Apple to try and keep their stocks as lean as possible so they would not have to worry about having any unsold units lying around in the event of impressive sales for the SE. While the iPhone 7 might not be selling as well as Apple had hoped, its larger counterpart the iPhone 7 Plus is doing much better.
The iPhone 7 and iPhone 7 Plus were first revealed back in September of last year, and are Apple's most powerful handheld devices to date. In the U.K., the phones sold well initially despite their £599 and £799 price tags. China and the U.S. also saw some good initial sales numbers as well.
Many analysts had predicted that the latest iPhone would be Apple's most successful smartphone to date, following the mass recall of Samsung Galaxy Note 7 units, which was initially expected to be the chief rival of the iPhone 7. Apple is also dealing with a shortage of wireless AirPods earphones, which are needed in order to get the most out of the new iPhone.
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