iPhone 7: Apple may cut production of flagship by 10% due to low sales

Apple is expected to cut the iPhone 7 range production by nearly 10% according to information based on data from suppliers as the phones have not been selling as expected.

Nikkei reports that sluggish sales has compelled the company to cut back production from Q1 of 2017 and rather focus on the iPhone 8 that is going to be released in 2017, which also marks the 10th anniversary of Apple's iPhone. Although the iPhone 7 Plus featuring a dual-lens camera module is popular and high in demand due to the shortage of these camera sensors Apple has not been able to meet demand for the units.

The company had slashed output for the iPhone 6s as well January-March 2016 as accumulated inventory of the model was unlikely to sell out and still remains with the company.

Apple was pipped to get an advantage for iPhone 7 sales given the Galaxy Note 7, its closest competitor had to be discontinued due to safety hazards associated with the device. However, as per the report Apple has not been able to take advantage of the situation as Apple's holiday numbers are not expected to be that great.

Earlier reports have hinted that despite the Galaxy Note 7 fiasco, Samsung loyalists have stuck to their favourite brand.

For Japan in particular the report claims the demand for the iPhone 7 is rather high partly due to the phone's compatibility with contactless IC chip readers used for services such as cashless payments. Sadly, Japan makes up just about 10% of the global smartphone market and its demand pattern cannot over power a general sluggish trend.