Slowing iPhone 6s Sales Drag Apple’s Shares Below $100

Apple’s shares tumbled below $100 mark for the first time in over five months. It fell to 99.87 on Wednesday before closing at $100.70 levels. Experts opine that recent reports floating in the market, that suggest the company is expected to scale back production of its latest iPhones by about 30 percent in the first quarter due to rising inventories, seem to be taking a toll on Apple’s shares.

iPhones are very important for the Cupertino company as it generates about two-third of its total revenue. Investors think that the latest iPhones – 6s and 6S plus – would not be able to match the high sales recorded for iPhone 6 and 6 Plus as they do not offer any radical improvement in features.

According to Rosenblatt Securities analyst Jun Zhang, iPhone 6S sales seem to have slowed during the recent holiday season. Zhang added that two of Apple's Asian contractors have reduced their production forecasts, The Associated Press reported.

Besides iPhones, the company also introduced other new products recently, including the Apple Watch, iPad Pro and a new Apple TV control box. But they "have not become meaningful revenue resources to offset slowing iPhone sales in 2016," Zhang wrote.

According to The Wall Street Journal, several analysts have downgraded their view on the company’s stock lately, citing the recent subdued iPhone sales indications. Wall Street forecasts sales of Apple’s flagship product to actually drop in the current quarter by 5%.

The Sydney Morning Herald reported that Apple generated over $US53 billion in net income in the fiscal year ending in September. The question remains that whether the tech giant is facing a temporary slowdown in sales growth or whether hyper growth has petered out altogether.