Mizuho Cuts '16 iPhone Production Forecasts

Mizuho's Japan team reduced the 2016 iPhone production forecasts for Apple Inc. AAPL to reflect lower numbers for the 6s and 6S Plus as well as for the forthcoming iPhone 7. Analysts mentioned that the iPhone 7 is unlikely to become "a runaway hit," in view of the model’s “expected hardware performance and external appearance."

Analysts recommended caution against “the simplistic notion that a full-model change will stimulate demand." They said that such changes had previous fueled demand. Mizuho expects Apple to keep the costs of the iPhone 7 down, adding that it may “set retail prices at lower levels than previously in order to stimulate demand."

Concern surrounding iPhone demand has been exerting pressure on Apple’s shares over the past few months.