The iPhone assembler, Foxconn, will cut working hours, says a source. Investors took that as further signs of a slowdown in Apple iPhone sales. Fred Katayama reports.
More signs of a slowdown in demand for iPhones. A source says the assembler for Apple's phones, Foxconn, will cut working hours instead of giving the usual overtime during the week-long Chinese Lunar New Year holiday. What's more, the provincial government is giving the company formally known as Hon Hai more than $12 million in subsidies to limit any layoffs. On Tuesday, the Japanese business daily, Nikkei, reported that Apple would chop production of the iPhone 6s and 6s Plus by about 30 percent in the first three months of this year because phones are piling up at retailers in Asia, Europe and the U.S. And last month, suppliers such as Jabil Circuit and Germany's Dialog Semiconductor issued lukewarm forecasts, raising concern on Wall Street. Analysts are now bracing for output cuts; a third of them have trimmed revenue estimates since early December. Apple's stock, which has fallen 13 percent over the last month, slid further in early trading amid a broad market selloff. Dialog Semiconductor dropping sharply in Europe. Shares of iPhone suppliers closed down in Asia trading, including Foxconn, Pegatron, TDK, and Alps Electric.