Demand for iPhones Will Remain “Feeble” Until Early Next Year, Says Foxconn Chairman
Following up on earlier reports of falling demand for iPhones, Nikkei cites Foxconn chairman Terry Gou to underpin the whispers: Apple won’t be able to reach the 230 million mark this year. Actually, the latest forecasts put iPhone sales at between 210 million and 220 million units for this year, meaning that sales could drop as much as 8.6% compared to last year.
“Hon Hai Precision Industry Chairman Terry Gou has told his staff that the demand for iPhones will remain feeble until at least early next year,” a source said. Hon Hai, better known as Foxconn Technology Group, declined to comment.
Apple’s major assembly partner Foxconn makes about 70% of iPhones. The company did receive a “sudden rush of orders” in April and May, but since the iPhone 6s and 6s Plus “lacks innovation” – according to Nikkei – the demand for the latest handsets has remained flat.
The negative Nikkei report also describes the next-generation model as lacking innovation, although it does add that the 5.5-inch version will feature a dual lens. The sources seem to corroborate whispers about the Deep Blue coloured iPhone, saying that “Apple is resorting to colours instead of pursuing innovative features.” Adopting more colours, however, has led to inventory buildup for suppliers, the source adds. Apple currently sells iPhones in four colours: silver, gold, space grey, and rose gold.
The report comes just ahead of the anticipated media event which will kick off the annual worldwide developer conference. The event is said to be focused on software and to act as an “appetizer” for the fall event, when the new iPhones will be unveiled.