Core Apple manufacturer Foxconn sees December revenues down 20 percentApple's primary assembly partner, Hon Hai —better known as Foxconn —saw its revenues drop approximately 20 percent in December, on top of missing full-year sales predictions from analysts.
The company reported December revenue of $12.3 billion, coincidentally about a 20 percent drop both month-to-month and year-over-year, according to Reuters. Annual revenues were up 6.42 percent, but that figure was below an averaged analyst consensus calling for 7 percent.
December numbers were as expected, Hon Hai said in an official statement.
A variety of Apple suppliers, such as Catcher and TPK, have either seen lower-than-expected December figures or had to adjust their 2016 spending. Along with Foxconn's data, trends appear to back a Nikkei claim that Apple is cutting its iPhone 6s/6s Plus production by about 30 percent.
The slower production has been attributed to an "inventory adjustment" rather than weak demand, giving vendors a chance to clear out stockpiled units. Demand for iPhones also typically tapers off after the Christmas season, remaining reasonably healthy until just a month or two before new models are announced —at which point some buyers may decide to wait.