The information is based on the latest number data from the company’s suppliers, which says the decreased production output is a result of slower sales in the Q4 FY2016 financial quarter ending September 24th. Yet despite a slowdown in sales, the fruit-themed toymaker still managed to top the charts in terms of overall device activations at 44 percent, while Samsung was placed second at 21 percent. The rest of the top global smartphone vendors placed below five percent, with Huawei in third at three percent.

In 2016, the company reduced iPhone production output between January and March by 30 percent due to accumulated inventory levels of the iPhone 6S at the end of the previous holiday season.

This year, the problem appears to be convincing customers that new features on the iPhone 7 and flagship iPhone 7 Plus are enough to justify a purchase at off-contract price or paying off their existing device’s installment plan. Over the past few years, carriers have pushed customers to switch from fixed upgrade cycles over to installment plans or, bringing the length of device ownership to an average of 29 months, up from the typical range of 24 to 26 months during the previous two years.

While Apple is expected to announce a significant iPhone overhaul this year with its 10th anniversary design, the company still must navigate the new service plan trends set by wireless carriers in order to get a significant number of loyal customers to maintain its profit margins.