Apple has reportedly reduced new iPhone production - again
Apple has reportedly reduced new iPhone production - again
Apple cuts 1Q production for new iPhones by 10 pct.: Report
11 January, 2019, 15:44
According to them, it was prior to the release of an open letter in which Tim Cook downgraded his company's revenue- and margin-related guidance for the same year's fiscal first quarter.
But Apple seems to think that it will continue to see lower demand for its products, if today's report is to be believed. Hot on the heals on this comes the news that Apple is cutting production of new iPhones for the current quarter by a significant amount.
In late December, Apple requested that its suppliers manufacture fewer-than-planned units of iPhone XS, iPhone XS Max and iPhone XR after which the tech company cut its quarterly sales forecast during the week ended on January 6th, thus, signaling slowing demand for its devices in the largest smart phone market globally - China.
It seems likely that Apple has known about this for some time already. At the time, analyst Holger Mueller of Constellation Research Inc. told SiliconANGLE that decision to stop reporting iPhone sales would allow Apple to "hide potential issues" regarding its business.
Reutersreported 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. Finally, BMO Capital Markets upgraded shares of Apple to a "market perform" rating and set a $199.00 price objective on the stock in a research note on Thursday, September 13th.
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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.
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.
Looking ahead, it seems that Foxconn numbers may drop further, as another cut in iPhone production is expected. "In fact, categories outside of iPhone (Services, Mac, iPad, Wearables/Home/Accessories) combined to grow nearly 19 percent year-over-year", also stated Cook in his letter. Apple took a direct hit from the issue and even lost its number one spot to Microsoft who in turn lost it to Amazon.
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