A couple of weeks after suggesting that Apple is moving to a three-year cycle on major iPhone updates, Nikkei is back with another pessimistic report. Citing an unnamed source ‘at a major supplier,’ the piece predicts that total iPhone sales for the year will be 210-220M, the lower number representing an 8.6% year-on-year drop.

The view is reportedly backed by Foxconn chairman Terry Gou, who is said to have told staff that demand for iPhones “will remain feeble until at least early next year.” Foxconn declined to comment on the report.

Suppliers say that Apple has been over-estimating demand when placing orders, and that one marketing decision has also caused issues …

A source at a major supplier said that Apple’s current strategy of selling different colored iPhones has led to an inventory build-up for suppliers, compared with simpler color schemes and lower costs previously.

There have been a series of reports suggesting that the iPhone 7 may not be too different from the iPhone 6/6S, though the Plus model is expected to get a dual-camera setup. A CIRP report last week suggested that Americans are now slower to upgrade.

Apple did not respond to Nikkei’s request for comment.

Photo: Ringo H.W. Chiu, FRE

FTC: We use income earning auto affiliate links. More.

Check out 9to5Mac on YouTube for more Apple news:

You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel

About the Author

Ben Lovejoy

Ben Lovejoy is a British technology writer and EU Editor for 9to5Mac. He’s known for his op-eds and diary pieces, exploring his experience of Apple products over time, for a more rounded review. He also writes fiction, with two technothriller novels, a couple of SF shorts and a rom-com!

Ben Lovejoy's favorite gear