Apple Reportedly Cuts iPhone 6s Production Orders by 10% [VIDEO]

Swiss bank Credit Suisse has claimed in a recent report that Apple has cut as much as 10% of its component orders due to slower than expected new iPhone 6s/6s Plus sales.

As a result, the bank has also lowered its iPhone sales estimates for 2016 to 222 million from 242 million, CNBC is reporting. The bank has estimated a 6% year-over-year growth rate in 2017. “We believe such adjustments reflect a more subdued launch around the iPhone 6s/6s Plus in terms of uptake”.

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The bank further said that the cuts seem to be driven by weak demand for the new iPhone 6s, as overall builds are now estimated to be below 80 million units for the December quarter and between 55-60 million units for the March quarter. Interestingly though, the bank is not recommending investors sell the stock, but rather “buy any dips”.

“While we acknowledge that shares may remain range bound for the next few quarters (between $100 and $130), we continue to believe any weakness creates an attractive entry point. Specifically, we see scope for Apple’s rapid installed base growth of iPhone to drive future upgrades beyond the next few quarters and additionally see the installment plans structurally accelerating the upgrade rates of iPhone users,” the bank said.

Apple shares were down over 2.7% following the report. Here’s what PCMag’s Dan Costa said in an interview with CNBC:

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  • Mac

    Translated to English, we missed the buying opportunity and wanted to create some negativity around the stock so we can get a chance to buy it lower.

  • Frysco

    Cut production? I’m STILL waiting for Rogers to get my 6s plus in stock… after almost 7 weeks after the release date!!

  • Chrome262

    amazes me how people still invest short term like that, when its all based on rumor and speculation. Its worse then gambling at times lol

  • SV650

    People can’t be in and out of the market fast enough to take advantage of these changes, but the computerized market managers can. These manipulations benefit them greatly.

  • Mac

    They don’t take advantage, they usually lose money. High frequency traders need to buy the shares from someone, and the gullible traders are first victims.