Apple Supply Chain Order Cut Doesn’t Mean Demand is Low for the iPhone

Jan 9,2016 | by Maq Ahmed @Google+
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During Christmas holidays, we heard the news that Apple had ordered suppliers reduced assembly line timings because the demand of iPhone 6 and iPhone 6s is decreased. The news was pretty terrible for the company because Christmas holidays are shopping season that boosts demand of products.

 

 

Today new information came from Nikkei Asian, when Apple had cut orders to its suppliers by 30% media took it as demand of iPhone 6s and iPhone 6s Plus is decreasing.  Ben Bajarin, Creative Strategies analyst says that cut order has nothing to do with iPhone demand. The decision was made to match the assessment of the situation that was made by Gene Munster.  It is also heard that on 27 January Apple will exhibit reports show that the company cutting orders are just estimates that are not linked to the sale of the phone.


Paradoxically, it was an identical supply chain story which was published in 2013 by Nikkei. The news was about Apple cut supply orders by 50% in consequences of lower demand of the phone. The news was focused on iPhone 5c and the Wall Street Journal also published its own edition of the story.  Both papers were bowed incorrect when Apple reported its earnings, which were 48.4 million. Tim Cook Apple CEO has pointed out supply chain news has often nothing to do with the demand of Apple’s products.


 

Current news published in the Nikkei Asian Review which shows that Apple overestimated demand of the iPhone 6s and iPhone 6s Plus, now the company is trying to adjust its inventory because demand is less than supply. The company has manufactured more units than retailers able to sell in the market. All in all US giant’s products have not lost their appeal and older models are also continuing to sell. So it is proved that it has been just a rumor because Apple is selling its product and brand name successfully. 

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