iPhone: Smartphone’s Taiwanese Supplier Faces Layoffs as Apple Cuts Back on Orders, Report Says:
Apple is scaling back its orders for iPhones, The Wall Street Journal reports, driving its Chinese providers to lay off staff as they ready themselves for lower sales of Apple’s flagship smartphone. Individuals comfortable with Apple’s supply chain told the WSJ that the business has cut order predictions for iPhones over recent months. In response to reduced orders, Foxconn — the primary iPhone supplier of Apple — has been given $12 million of government subsidies to help it prevent mass layoffs.
Other sources also suggest that Chinese makers have been dealing with a shortfall in Apple orders for a little while now. In the past two months of 2015, a traditionally busy time for creation, Chinese factories had some idle time that is surprising, and according to the sources of the WSJ, Foxconn began sending workers home early for the Chinese new year last month — two months.
An Apple representative said that the business does not comment on sales predictions, but in October, Tim Cook said that he anticipated iPhone sales to grow year on year in the first financial quarter of 2016, after record sales of the 6S and 6S Additionally. The business is also coming off a particularly successful financial quarter — one that saw what Tim Cook described as the business ‘s most powerful “complete revenue increase ever” — driven in part by Chinese demand for the iPhone 6S.
But Apple stock has dipped over the last month as reports surfaced that the firm intended to scale back iPhone generation from its planned total. It can be a blip in the projections of Apple, but Apple sneezes, its suppliers catch a cold. Those share drops were represented in the share value of Chinese manufacturing companies, with firms like Foxconn and Largan Precision Co. — a Taiwanese camera provider — seeing their shares plummet in result. While production giants like Foxconn could live without Apple, a number of Chinese companies have built their entire businesses around making parts for Apple products. If — as Nikkei says — Apple brings its generation demands, they will be pleased.