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Apple suppliers shudder as $160bn iPhone market shrinks

Production cut comes as valuation of 10 parts makers falls 20% since October peak

Wrinkles have emerged in Apple's Chinese sales, forcing the company to cut iPhone production.   © Reuters

LAS VEGAS/BEIJING -- The impact of Apple's planned 10% cutback in iPhone production for the January-March quarter is reverberating to its suppliers, as faltering Chinese sales cast a shadow over the device, which generates over $160 billion in annual sales.

Apple notified suppliers in the fall to prepare production of components for its three new iPhone models. But sales in China, which accounts for 20% of its proceeds, fell in the October-December period for the first time in six quarters, and global revenue is forecast to decline for the first time in nine quarters.

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