Apple Reduces iPhone Parts Orders

Apple Corporation reduces the volume of orders for components for the iPhone, preparing for the scenario in which sales of the company's flagship smartphone will decrease. This forces Chinese component suppliers to cut staff.

People familiar with the situation report that Apple has reduced orders. In this regard, the Chinese government was forced to allocate more than $ 12 million to Foxconn - the main supplier of components for the iPhone - in order to avoid mass layoffs.

According to some sources, Chinese component manufacturers have faced the problem of reducing Apple orders for a long time. In the last two months of 2015, which traditionally are a “hot period” in operation due to the increased demand for products, Chinese enterprises unexpectedly turned out to be completely unloaded orders. And in connection with this, in Foxconn itself, workers were previously released for the “winter holidays” associated with the Chinese New Year.
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Foxconn itself refuses to recognize this version, stating that the administrative center of the Chinese province of Henan - Zhengzhou City - gave the company finances as a thank you for "our company's contribution to maintaining a significant number of workers in our enterprise in Zhengzhou throughout this year." However, a completely different information was given on the website of the city administration: the government allocated a grant of 81.9 million yuan (equivalent to $ 12.6 million) to the company as a subsidy, which is intended to be unemployment insurance.

Apple representatives said that the company would not comment on sales forecasts at the moment, and at the same time recalled the words of Tim Cook, who in October last year said that Apple expects a steady and systematic increase in iPhone sales from year to year.