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Apple has no plans to increase production of the iPhone in 2016 due to low demand for premium smartphones

Apple plans to increase iPhone production in the second half of this year due to weak sales of premium smartphones on the market. About it reports RIA citing suppliers of components.

Suppliers from Taiwan have much fewer orders from Apple compared to last year due to the decline in demand, the publication reports. “Suppliers say they receive fewer orders in the second half of the current year compared to the same period last year. Traditional peak season this year cannot be compared with that for the last few years”, — told the newspaper one of the sources.

Another source said that the supply from TSMC, the only provider of the latest A10 processors Apple used in the iPhone 7, from June to December will fall by 70-80% in annual terms. “TSMC revenues in dollars will grow by 4% yoy, while operating profit is likely to remain unchanged due to a poor situation with the release of Apple products,” said one of the sources.

As the newspaper notes, orders Apple represent about 16% of TSMC revenue. TSMC representative declined to comment to the Agency message, the forecast of revenues and Apple’s plans for the orders and production of smartphones.

On the background of this message, Apple shares in trading on the American stock exchange NASDAQ fell by 2.37% to the dollar is 90.32 per share. “This is the first fall of Apple shares to $90, starting in June 2014,” wrote Business Insider. According to the publication, it may be associated with a decline in iPhone sales and shipments of processors for Apple by TSMC.

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