Apple iPhone XS

Apple Reportedly Cutting iPhone Production by Ten Percent This Quarter

The rough start to 2019 looks set to continue for Apple. The Nikkei Asian Review is reporting that the Cupertino, California tech giant has told their supply chain that production of all iPhone models will be cut by 10% this quarter. According to the report, Apple asked for suppliers to cut their production for the January through March 2019 quarter late in December. The request came just before Apple’s announcement of missed earnings for the first time in over a decade.

The request to suppliers is the second such request since the launch of the iPhone XS, XS Max, and iPhone XR late last year. Sales have reportedly been lackluster across the board for all three models with many opting not to update their current phones for the new ones. It has also been suggested that buyers are simply not willing to part with up to $1500 for a new phone.

For their part, Apple has cited the current situation in China – lackluster sales and the current trade war between the United States and China – as key source of their challenges with the new models.

What this means in real number is that just under 40 million iPhones will be produced this quarter, down from roughly 43 million. That figure is less than the originally projected 48 million that were to be produced.

All of this is with the background that Apple, for the first time, will not report iPhone unit sales figures in the upcoming earnings report for this quarter.

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