The company had slashed output by 30 percent in January-March this year due to accumulated inventory, the paper said.
Apple’s shares were down 0.84 percent in midday trading, in line with the Nasdaq stock index. An Apple spokeswoman declined to comment on the report.
In a related development, according to DigiTimes website, display screens for the next iPhone will be supplied by its biggest rival – Samsung.
The report suggests that the South Korean tech giant will be an ‘exclusive supplier’ of AMOLED displays for the next iPhone. It will also provide a maximum of 20 million units per month to Apple.
The leaked information is based on a deal signed between the two companies back in April this year, focusing mainly on the OLED panels.
If rumours are to be believed, the next iPhone will come in three screen size variants – 4.7-inch, 5.5-inch and 5.8-inch. Of these, the model with the largest screen size will have an Amoled display, while the other two will come with IPS LCD displays.
Apple’s 2017 flagship will mark the 10th anniversary of the first iPhone launch. KGI analyst Ming-Chi Kuo noted last month that three iPhone 8 (if that turns out to be the name) variants will be launching next year.