Apple cutting back on iPhone 6s orders has got analysts worried

Apple suppliers are reportedly cutting on production, prompting market concerns. It remains unclear whether productions cut were directly related to Apple's iPhone, but some analysts believe this is a sign of softening demand for the iPhone 6s and iPhone 6 Plus. Did Apple fail to deliver a hit product?

Apple's main revenue source is disappointing many. Consumers are not buying into it and some are not afraid to express it so. Credit Suisse analysts noted that Apple has been cutting orders seemingly because of weak demand. The company's builds are expected to go under 80 million units for the December quarter while the March quarter will see around 45-50 million units. This has got analysts divided, with some convinced of Apple's grim outlook and others still hopeful for the company.

"Our latest monthly carrier surveys, in conjunction with supply-chain feedback, indicate disappointing iPhone sell-through. This is resulting in rising inventories and increased risk to component supplier outlooks for Q4/Q1," Fortune quoted John Vinh from Pacific Crest.

This is not the case for everyone. "The usual ‘fire in a crowded theatre’ comments this morning from competitors are not a surprise to us as we saw the same knife fight develop going into the much contentious September quarter and Apple proved the skeptics wrong yet again. We expect a very strong December quarter/holiday quarter on healthy iPhone 6s demand…" said FBR's Daniel Ives.

Trip Chowdhry from Global Equities is in the middle ground. According to him, there is nothing new in what is happening to Apple. It is already an established fact that Apple's iPhone sales will slow down come 2016. Apple's EPS and revenue predictions already show this. Silicon Business Journal, however, says that Apple must sell more iPhones if it wishes to gain more investor confidence. Other analysts are looking forward to the potential of a 4-inch iPhone to boost demand but that will not happen soon enough.

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