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Apple apparently does not plan to make enough of the newly
launched iPhone SE model, the Nikkei report said.
(http://s.nikkei.com/23C81i1)
The company's shares fell 1.8 percent to $110.05. Shares of some
Apple suppliers also fell following the report. Skyworks
Solutions Inc <SWKS.O> was down 1.4 percent, Broadcom Ltd
<AVGO.O> fell 2.4 percent while Jabil Circuit <JBL.N> lost 1.7
percent. The Nikkei reported in January that the technology
giant was expected to cut production of its iPhone 6s and 6s
Plus models by about 30 percent in the quarter ended March, but
production was expected to return to normal in the current
quarter.
The production cut could last longer than the one it implemented
in 2013, when Apple cut production orders for its cheaper iPhone
5C a month after its launch, the Nikkei said.
Apple has told parts suppliers in Japan and elsewhere that it
will maintain the reduced output level in the current quarter,
the Nikkei report said.
Apple did not immediately respond to a request for comment.
In January, Apple said it expected a fall in revenue for the
quarter ending March - its first forecast for a revenue drop in
13 years - as the critical Chinese market showed signs of
weakening. It also reported the slowest-ever increase in iPhone
shipments.
Global smartphone sales in 2016 are expected to grow at their
slowest rate - in single digits in percentage terms, according
to research firm Gartner Inc <IT.N>.
(Reporting by Sai Sachin R in Bengaluru; Editing by Don
Sebastian)
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