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iPhone production slashed again as demand wanes

Apple tells suppliers to make 10% fewer handsets.
iPhone XS Max notification centre hero size

Apple has slashed iPhone production by 10%, telling its suppliers to hold back on making as many devices as planned between January and March.

Sources say Apple revealed the news to its partners late last month. It comes after it did the same in November 2018, reportedly cutting as much a third of its orders for iPhone XS and iPhone XR units.

A source close to one supplier said Apple was now expecting to make between 40 and 43 million iPhones in the first quarter of 2019, down from its projection of 47 to 48 million.

Considering Apple sold upwards of 52 million iPhones between January and March last year, that could represent a massive 20% year–on–year slide.

Apple’s iPhone XS, iPhone XS Max and iPhone XR have reportedly struggled to sell in expected numbers, with the California company last week issuing its first profit warning since 2002.

Apple CEO Tim Cook blamed economic conditions in China for the shock news, although older iPhones lasting longer and premium price tags are also likely to blame.

Apple is also facing stiffer competition, with similar smartphones offering broadly the same functionality for much less money.

Source:

Nikkei

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