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The Markets
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The Markets
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Hardware & electrical equipment

Apple shares sink lower amid slowdown fears

Tech behemoth Apple saw shares hit yesterday and are down below the US$100 mark in pre-market..

Tech behemoth Apple (NASDAQ:AAPL) saw shares hit yesterday and are down below the US$100 mark in pre-market amid reports of a slow-down in production of its latest iPhone 6S and 6S Plus models.

The firm, according to reports, is expected to cut production of its latest models by around 30% in the first quarter this year due to mounting piles of unsold units.

One analyst described it as an "eye-opening" production cut, which showed softer demand that Apple has seen with 6s.

Yesterday, the shares went as low as US$99.87 and finished at US$100.7 as traders got spooked at the prospect, though it came as there was general decline across all equities.

The stock is currently down over 3% in pre-market at US$97.45.

Last year, the iPhone made up over half the group's sales of products and services last year – US$155bn from a total of $234bn - but some analysts are now trimming their estimates for iPhone sales for 2016, saying there could be a first annual decline for the handsets since they were introduced.

Notably, the biggest supplier to Apple, Foxconn, which is based in Taiwan, is cutting its working hours during China’s New Year, seen as an unusual move.

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