The Nikkei Business Daily reported that Jobs’ Mob is continuing to slash the production of iPhones in the quarter ending June in light of sluggish sales.
This means that Apple expects the iPhone SE to fail to attract any buyers. Despite it being slightly cheaper, and being hailed as a return to the “small form factor” by the Tame Apple Press, it seems that the great unwashed saw the SE for what it really was – an out-of-date iPhone 5C with a slightly better chip.
It does dispute the theory that Apple fanboys will buy a dog turd if it has an Apple logo on it. It seems that Apple was crazy for even trying it.
The company’s shares fell 1.8 percent to $110.05. Shares of some Apple suppliers also fell following the report. Skyworks Solutions was down 1.4 percent, Broadcom fell 2.4 percent while Jabil Circuit 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.
Now it is clear that 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.
Apple has told parts suppliers in Japan and elsewhere that it will maintain the reduced output level in the current quarter.
Apple is saying nothing but in January, it said it expected a fall in revenue for the quarter ending March . At the time it blamed the Chinese market showed signs of weakening. However it was also the slowest-ever increase in iPhone shipments.