Apple cuts production orders for all three new iPhone models

Ivan Schwartz
November 21, 2018

A lower-than-expected demand for the new iPhones and Apple's decision to offer more models has made it more hard to anticipate the number of components and handsets the company needs, according to the paper.

Weaker demand in China is also reportedly another reason for the cuts.

Apple has reduced production orders for all three of its 2018 iPhone models, including repeated reductions for its most affordably priced model, the iPhone XR, according to a report.

The company slashed production of all three of its new iPhone models - the XR, XS, and XS Max - according to a report from the Wall Street Journal.

Apple's iPhone XS Max costs $1,099 the new OnePlus 6T is considerably cheaper with a starting price of $549 in the US.

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Shares of Apple suppliers were also hit, with Lumentum Holdings Inc, Universal Display Corp, Cirrus Logic Inc and Skyworks Solutions Inc down between 2.6 per cent and 6 per cent. We saw a similar move take place a year ago, when iPhone 8 production was cut as many customers opted for the iPhone 7 or iPhone X instead.

The decision comes following the company's inability to accurately predict demand for the different elements of its current three-model iPhone lineup.

Apple stock has fallen more than 15% this month as investors grow increasingly anxious about iPhone sales. In its fourth fiscal quarter, ended 19 September, Apple sold 46.9 million iPhone units.

However, revenue for its iPhone business jumped 28.9 percent during the fourth fiscal quarter, reaching US$37.19 billion.

"Without the FAANG leadership, including Apple, the market is going to struggle", said Peter Cecchini, managing director and chief market strategist at Cantor Fitzgerald in NY.

Other reports by GizPress

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