Cult of Mac has reported that suppliers of parts for the iPhone are suffering decreased revenues because of the lack of demand for the iPhone.
There are several reasons for this and one is the traditional drop-off in sales the further you get from launch day. The iPhone 6s and 6s Plus were launched in September last year and most people that want one have already bought one. Sales peak in September, but steadily decline in the following months.
Apple has also told us to expect slower iPhone sales growth in the future. It seems that the market is reaching saturation point where everyone that wants an iPhone has one.
Whether the rumored small iPhone 5SE will boost flagging sales remains to be seen.
One thought that occurs is that if Apple is indeed about to launch a 4in iPhone, why would those parts suppliers see falling revenues. Apple typically orders millions of units for launch day, so those suppliers should be busy building iPhones. It rather goes against the small iPhone rumor.