Production of current iPhone tipped to slump by 30 per cent

Production of the current iPhone models is predicted to be cut by 30 per cent in the January – March quarter.

Reuters cites a report in Nikkei saying inventory is piling up at retailers since the launch of the iPhone 6S and 6S Plus last September.

Daniel Ives of FCR Capital Markets called the scale of the cut “worrisome” and said it “speaks to the softer demand that Apple has seen with 6s out of the gates,"

Elsewhere, the Wall Street Journal reports on a document from the city of Zhengzhou offering the equivalent of $US 12.6 million to major supplier Foxconn to minimise redundancies.

"Chinese New Year is a big holiday and there is usually overtime for workers. But this year, Foxconn will have a normal break," said an unnamed source.

December forecasts from others among Apple’s many suppliers, such as Dialog Semiconductors and Jabil Circuit, have also prompted fears from analysts that shipments of iPhones could dip.

Moor Insights & Strategy’s Patrick Moorhead took a different view, telling Reuters that, "Apple has been gaining significant market share in pretty much every region, and I'm not seeing a global slowdown."