The year 2017 may see Apple fans get a limited supply of the iPhone 7 smartphone. Apple has decided to cut the production of these iphone by close to 10% within the first quarter of 2017, as explained on Nikkei Asia Review. This is a drastic decision the firm has made after a disappointing performance.
The Japanese publication is of the opinion that the much slower sales may lead to reduction in output within the first three months on 2017.
Not first time
But this is not the first time Apple is making such a decision on a flagship product. Last year saw the iPhone 6S and iPhone 6S Plus production scaled back in the first quarter of the year due to an abundance of units in the supply chain from over-estimated Q4 sales.
Similarly, when the iPhone SE was launched, questions were asked regarding the popularity. To avoid much speculation, the firm opted to keep production at its minimum in a bid to cool the suppliers. Apple continues to bias towards ‘just in time’ manufacturing to reduce the slack between manufacturing and selling a handset.
During the earlier stages of the iPhone 7 and iPhone Plus, Apple made a decision to cut back the numbers. The effect of this was that the dual lens iPhone 7 Plus had supply limitations even as the iPhone 7 demand continued to slag.
As much as the new handsets are still selling at a faster rate, these sales are not as strong as they used to be. Companies continue to be innovative but such innovation shouldn’t involve taking away what customers are used to. Look at what happened with the removal of the headphone jack in iPhone 7. Such kinds of upgrades may be detriment to the sales of new product.
Reports suggest that Samsung is planning to launch its 2017 Galaxy S8 with no headphone jack. My opinion is that the South Korea company to first cool down before making such a decision. If the move turns in opposite favor to it then healing from the Galaxy Note 7 debacle will prove a challenge.
According to these reports, Samsung plans to offer a direct competition to Apple’s AirPods and will thus have its own set of wireless earphones. But as an additional feature, they will have the Harman audio. We should remember that this may not be a new entry for Samsung considering the South Korean company already has its own wireless headphones – Icon X.