Apple cuts 1Q production for new iPhones by 10 pct

Ebony Scott
January 11, 2019

The Nikkei writes: "Apple is cutting its current production plan for new iPhones by about 10% for the next three months in a sign that the USA smartphone maker is expecting a further hit this year, just a week after its market-shaking revelation that it would miss revenue forecasts at the end of 2018". Gideon Capital Advisors Inc. bought a new stake in Apple in the first quarter valued at $1,070,000.

Apple ordered its suppliers to cut down the number of new iPhone model units coming off their production lines right before Tim Cook published his letter to the Apple investors at the beginning of the month.

In fact, throughout the month of November, the giant of Cupertino would cut the production of its latest iPhone several times due to a sharp drop in demand, something that was recently confirmed.

Slowing iPhone sales aren't just bad news for Apple.

Reuters reported last month that Apple will begin assembling its top-end iPhones in India this year through the local unit of Foxconn, citing a person familiar with the matter.

Market research firm Canalys estimates shipments fell 12 percent in China past year and expects smartphone shipments in 2019 to dip another three percent, to below 400 million for the first time since 2014.

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Mueller said today that Apple's current problems are a good example of what happens when a company fails to get the combination of innovation, features and price right.

Very important to note is that the numbers vary a lot from one day to another, but every time, the iPhone XS Max remains the leading 2018 model.

"User familiarity has always worked for Apple, but that also mean that users keep their phones around longer", Mueller said. As a group, analysts forecast that Apple Inc. will post 12.13 earnings per share for the current year.

Last week, Apple lowered its guidance on revenues after lower-than-expected iPhone revenue in the Greater China region, as per CNBC.

"I call bologna on that", Cook said.

This decline in production would have been decided before the warning on the results of the last quarter whose turnover should be $ 84 billion instead of the 89 to 93 billion initially anticipated.

Other reports by GizPress

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