Nikkei Asian Review is reporting that an unnamed source 'at a major supplier,' is predicting that iPhone sales for the year will fall to around the 220 million mark, representing an 8.6 percent year-on-year drop.
The report claims that Foxconn chairman Terry Gou has told staff that demand for iPhones "will remain feeble until at least early next year."
Foxconn manufactures roughly 70 percent of iPhones, and it saw revenues fell by 5.5 percent year-on-year in the January-May period.
A slowing Chinese economy - which now accounts for about 25 percent of iPhone sales - is being partly blamed for the decline. Furthermore, a Gartner report indicated that consumers just aren't seeing a good enough reason to upgrade.
Apple's fondness for iPhones in a variety of different finishes is also reportedly causing problems, and "has led to an inventory build-up for suppliers."