On Friday’s early morning trading, shares of the iPhone maker declined to as much as 0.9% on a report that Apple might cut its iPhone production as early as January this year throughout the first quarter.
Reports stated that Apple plans to cut their iPhone production by less than 10% initially. This confirms
This would be the second year in a row that the company would be making production cuts in spite of reception that the company was not able to keep up with the demand from the public.
This also confused some investors as their recent iPhone 6 and 6s lines reportedly did not sell as they have predicted leading to an excessive inventory pile. The 7 and 7 Plus also failed to meet certain sales quotas according to reports.
Apple’s stock is down on Friday to $115.78. Despite that, the shares of the tech giant company climbed back last year by 12.5% led by dividends. For 2016, the company
Apple Prospects In India
In the middle of production cut reports, statements have also resurfaced where the Cupertino, California-based company is reportedly going to start the production of iPhones in India as early as April this year. Although there is still yet a statement from the company personally to confirm this, Apple has been long trying to target countries specifically from Asia directly for its products although
In a report by Indian newspaper the Times of India, the American company has reportedly struck a partnership with Wistron, a smartphone manufacturer from Taiwan, to start the production and to start assembling iPhone units in Bangalore. Just last month, the company have sent the government in India a letter expressing and stating their desire to start manufacturing Apple products in the country. The letter also explained an overview to how the company intends to start the production in India and what incentives it expects to receive from the Indian government.
This will allow Apple to sell and to expand the sales of the iPhones in India at much more competitive prices as iPhones are currently sold at a very high price in India today. Some analysts and experts have expressed their doubts on the report stating that the partnership seems unlikely while some have looked at the brighter side of thing stating that the company is set for a huge return investment opportunity should the iPhone maker start assembling its products in India as the prospect also offers huge opportunities for the government.
The primary benefit for the government is that the manufacturing unit in the country would generate more jobs for India should Apple decides to go on with the investment. Apple’s request has been sent to India’s Department of Revenue and Ministry of Electronics and Information Technology back in November and is in process of being examined and reviewed.