Apple has always been gearing toward pioneering in technological advancement. However, 2017 might be as tough as 2016 for tech giants as they once again compete for market leadership this year.
International Business Times reports that although iPhone 7 and iPhone 7 Plus did well after being released last September, consumers seem unpersuaded about upgrading their smartphones this year. Perhaps launching new iPhone installment in the first quarter of 2017 could be a bit early. Hence, Apple's market might not be keen on buying new models during the first quarter of 2017. Previously, Apple has made adjustments on the production of their handsets in 2016. Last year, from January to March, the tech giant cut its output at around 30% based on their inventory.
According to Reuters, financial daily The Nikkei reported that Apple plans on cutting about 10% of their production of iPhones from January to March this year, providing that their calculations are based on data gathered from suppliers. The report continued saying that Apple's shares went down 0.84% in midday trading. When asked to respond to the latest issue, Apple declined to comment about the report.
Other sources indicate that Apple claims to cut orders for the iPhone 7 lineup by 10% primarily due to sluggish sales. Additionally, some argue that it seems odd for Apple to decide to trim down the production of iPhone 7 and iPhone 7 Plus because of their inability to provide the market with 5.5-inch iPhone 7 Plus units due to the shortage in camera sensors. Although it is noted that iPhone 7 did have strong sales in Japan, the figure only accounted for 10% of Apple's overall sales.
Other reports suggest that despite Samsung's exploding Note 7 fiasco last year, it only did little help to Apple as many customers are still committed to Android. Nonetheless, it is still early to evaluate as to who triumphs in the tech industry this 2017.