Apple inc has announced its intention to cut production of its flagship Iphone in the first quarter of 2017. The cut of 10% follows cuts in 2016 as demand has fallen for the most popular smartphone in the worlds two biggest markets, China and the USA. Annually Apple sells in excess of 200 million iPhones.
First launched in 2007, the lineup has gone from strength to strength, with TV images of huge queues outside Apple stores around the world a common sight upon the release of a new model. The company and phone especially has developed something of a cult following, and has taken the company to the dizzying heights of being not only the worlds biggest smartphone maker, but also the worlds richest company.
The slow down in phone sales is not unexpected, and the future of the iPhone is still very much rosy. Though as globally wages are being held back, it is believed that people do not have the disposable income that they once may have had, and this hasn’t helped global smartphone sales. It was hoped that problems with a recent model manufactured by Apple’s arch nemesis Samsung in its Note 7 phones would stimulate sales. Though many have noted that Samsung’s rapid withdrawal of the phone from the market and the lengths that they’ve gone to recompense people for their loss has indeed done the company little harm.
Though with production slowing, Apple may yet again look to reinvent the wheel in order to stimulate sales growth once again. Especially in China, where until recently the phones weren’t sold. Their expansion in the country has been astronomical and has certainly helped temper falling sales in the west.
Though not the best sign, confidence in Apple is at an all time high, the company known for reinventing itself is once again on a task to do that, after revealing plans that they’ve been working on technology for self-driving cars. Though as a company that is renowned for building its own software and hardware, the future could be extremely interesting for a possible iCar. All this is a long way off, and they would be jumping in to a market that would already be dominated by companies like Tesla. Though if the past is anything to go by Apple will do brilliantly. Before 2007 no one had used a smartphone, that was until Apple turned the industry upside down.
Joseph is a 34 year old freelance writer from London. He has a wide interest in politics and specialises in the subject. He's also a blog writer in his spare time.