Pegatron Partially Halts Production, Due to Low iPhone 6s Sales


Pegatron stopped hiring workers for its iPhone 6s manufacturing plant in Shanghai in mid-October (via AppleInsider), and partially halted production due to slow sales of the latest models, according to a fresh report from China. Pegatron is allegedly responsible for about 40% of iPhone 6 and iPhone 6s assembly orders, industry sources say (via BrightWire).

In a separate report published on Barron’s, Pacific Crest’s John Vinh and his team have shared their note to investors in which they paint a shady future for Apple’s Q1 2016 iPhone sales. According to their metrics, iPhone sales are declining meaningfully on a year-over-year basis, while inventories of iPhone 6s units continue to build.

Vinh writes that iPhone 6s inventory on a days-of-inventory (DOI) basis is already at levels unseen since three months after the launch of the iPhone 6 – the 6s came out just a month ago, and he thus sees increased risk to Apple suppliers.

Apple CEO Tim Cook, on the other hand, has warned observers that reading things into supply chain news is a mistake they should avoid, as the chain is very complex. In a recent interview with Mashable, Apple SVP of worldwide marketing Phil Schiller emphasized this fact once again: Apple doesn’t share where it gets its parts, because it doesn’t source parts from a single supplier and partnerships can change.

Also, it is worth mentioning Apple’s guidance for the current quarter: The company projects revenue between $75.5 billion and $77.5 billion, which compares to Apple’s best historical quarter (Q1 2015), when the company reported revenue of $74.6 billion and record iPhone sales of 74.5 million.

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  • Michel Plante

    Because of the price hikes in Canada, Apple has sold a lot but not like the iPhone 6.

  • kev

    you are right, almost 200$ more

  • raslucas

    While I agree that the price hikes have probably affected Canadian sales ( They ARE because of the exchange rate, but on the top end I think they are probably expecting the rate to get further apart), I don’t believe Canadian sales make even a small dent in Apple’s revenue. I would love to see Apple try to take sympathy with Canadians and our exchange rate woes. If Apple lowered prices in Canada on the iPhones, Americans would consider going up here to buy their iPhones, but our taxes probably stymies any sort of benefit.

    Still, at the end of the day Apple has a % markup target that they have to reach, and we have to understand that the exchange rate is making Apple reconsider parody pricing.

  • Jim Derlatka

    its funny, as I still don’t have my iPhone 6s plus 128 gold….. been on reservation list forer

  • coldspring22 .

    Maybe 128G model is rare, but 64G and 16G version of iphone 6S plus are plentiful. Just check Bestbuy for store availability. They are plentiful everywhere and you can pick them up by driving to the store. Looks like no shortage of iphones except for low volume 128G model

  • none

    They should lower prices on the 6S and phase out the tiny 6. There’s no need for having uselessly-small phones any more.