Apple expected to cut iPhone 6S output 30%

Apple is expected to cut production of its latest iPhone models by about 30% in the January-March quarter due to mounting inventories, the Nikkei reported, rattling the nerves of investors in the US giant’s Asian suppliers.

As inventories of the iPhone 6S and 6S Plus have piled up since they were launched last September, production will be scaled back to let dealers go through their current stock, the business daily reported.

The report prompted a 2.5% drop in Apple shares, which have lost about a quarter of their value from record highs in April, reflecting worries over slowing shipments.