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Apple is facing a decline in demand for its iPhone 6s and 6s Plus. The newly launched iPhone SE and iPad Pro are also failing to enthuse excitement in their respective segments.

Apple, it is learnt, is bracing itself for slower growth rates compared to what it has been over the years. And the immediate to feel the pain is none other than the Cupertino company’s suppliers who have been complaining about receiving lesser orders over the months.

Suppliers are looking for even disappointing periods ahead with chip orders for the iPhone 6S and 6S Plus likely to be halved during the second quarter of 2016, claimed sources with DigiTimes. Apple has already faced with the bleak prospect of diminishing demand for its mobile devices with demand for the recently launched iPhone SE not likely to be encouraging either. The iPhone SE is expected to ship just 4 to 5 million units in the current quarter.

Apple has also recently launched the 9.7-inch iPad Pro along with the new smaller iPhone SE during its much-publicized March 21 event.

Apple CEO Tim Cook too had stated they are aware of the decline in demand for its flagship iPhone range. In his revelation made during the financial earnings conference call in January, Cook had said sales of the iPhone could slide further in the March quarter, which if true will make for the first decline in year-over-year sales ever of the iPhone since it was launched back in 2007.

Analysts though aren’t duly worried about the trend as demand for Apple devices is generally slow during the early part of the year. Things start to pick up again during the third quarter, typically when Apple launches new products. Thereafter, it is the holiday quarter when demand for Apple devices generally shoots through the roof.

Apple iPhone SE Colors

Earlier, Apple played a big gamble in launching a new smaller iPad Pro variant offering a 9.7-inch display. The newest member of the iPad Pro range comes with all the qualities of the bigger 12.9-inch variant, which includes the A9X chip, M9 motion coprocessor as well as the quad audio speaker system. Then, of course, there is the touch-type cover available as well while the display is also optimized for Apple Pencil support.

As for the iPhone SE, the idea has been to offer a new device that is just as capable as the flagship iPhone 6s but in a smaller 4-inch form factor. That includes the A9 processor and an M9 motion coprocessor along with compatibility with Apple Pay and Hey Siri. The iPhone SE also comes with a 12-megapixel rear cam that capable of 4k video capture as well.

1 COMMENT

  1. All of this information is already factored into the stock price. Most of this article is using old news and when earnings are released in three weeks, mot people will be focused on the release date of the IPhone 7. Apple has $ 230 billion in cash, a great dividend, a loyal fan base, and Apple Pay is dominating. Many similar articles are written which mention negatives but leave out the positives.
    In three years even if Apple has no growth , with current profit at 40% of sales, they will have an extra $ 250 billion in positive cash flow. After dividends,a dn buybacks, they will have over $ 350 billion in cash in three years . With growth they will have $ 400 billion in cash. They are currently at a low 11 PE with $ 240 billion in cash.

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