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According to a new report from Taiwanese trade publication DigiTimes, Apple has scaled back iPhone 7 production as early demand for the new flagship is fading. Demand for the new handset is said to be particularly dropping in lucrative markets like China so with a view to balance demand and supply, Apple is said to have scaled back production of the iPhone 7.

The report also claims that the initial sales of the iPhone 7 were good partly due to the interest in the new Jet Black color option and the fact that the Galaxy Note 7 had bowed out and Apple’s flagship didn’t really have a worthy rival for some time.

Suppliers are now said be very conservative about their iPhone 7 shipment forecasts for the first half of next year. They expect to ship five million fewer units than they did in the second half of this year. Demand normally does go down at that time because most customers would rather hold off the purchase until the fall when Apple usually launches new iPhones.

Many customers will particularly hold off buying the iPhone 7 just because major updates are expected to be introduced with the iPhone 8. It’s going to be the 10th anniversary of the iPhone next year and that’s a pretty big achievement for Apple’s flagship product. The company is expected to launch a revolutionary iPhone next year which is why many of its fans might choose to wait until next year.

Filed in Apple >Cellphones. Read more about and .

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