Declining sales pushed the tech giant Apple to announce a 10 percent drop in its production of iPhones in the first three months of 2017.

Apple Faces Drop In iPhone Sales

On Friday, Dec. 30, based on data from Apple suppliers, Japanese newspaper Nikkei reported that sales of the iPhone 7 lineup are less than Apple expected. The report also said that, while the high-tech American company has not been able to meet demand for the 5.5-inch iPhone 7 Plus, Apple plans to cut production of both the iPhone 7 and iPhone 7 Plus. The jumbo-sized mobile phone from Apple remains popular but the company encounters production difficulties due to a shortage of camera sensors.

According to Apple Insider, particularly due to Apple Pay launched in October, sales of the iPhone 7 are strong in Japan. However, the Japanese iPhone market is not a significant one, as it only accounts for roughly 10 percent of the global sales.

The latest reports suggesting Apple's difficulties on the iPhone market stand in contrast to Wall Street expectations. Market analysts generally expect that the iPhone 7 lineup will help Apple achieve its best quarter ever. It remains to be seen what the reality on the market truly is when Apple will report in late January the results of its holiday frame.

Apple To Cut iPhone Production By 10 Percent

According to CNET, Apple cutting production of iPhones by 10 percent in 2017 will mark the second year in a row in which the company scaled back production of its flagship mobile device. The main cause for the announced cuts to the production of the two iPhone models is the flagging demand in general.

Customers are still appreciating especially the iPhone 7 Plus model and the market shows a high demand for the photography-centric, large phones. However, the shortages in camera sensors are adding to the tech giant's manufacturing difficulties, as they are limiting the number of iPhone 7 Plus models the company can produce.