Apple Reportedly Cutting iPhone Production by 10% for the January-March Period Due to Waning Demand
Most smartphone vendors have seen their shipments flatten or decline this year as the market has reached its saturation point. Apparently, this can be blamed on the absence of groundbreaking technologies, causing consumers to hold on to their devices longer. Apple is also feeling the heat, and the company reduced its guidance on earnings by 7 percent last week, blaming it on the strained ties with China and the weakening Chinese economy. If reports are to go by, the Cupertino giant asked its suppliers to cut down production once again sometime last month.
Apple Is Slashing Production of All the iPhone Models Released Last Year
There have been numerous reports claiming that Apple has cut production in the last few months, eliciting an impression that production has been slashed a dozen times since the release of the latest iPhones. However, Apple has reportedly done that only twice in two months, so the situation might not be as bad as it sounds.
This time around Nikkei states that Apple has ordered production cuts for all the three new models and not just the iPhone XR. The production plans have been trimmed by nearly 10 percent for the March quarter. This means that around 40 and 43 million units of the new phones will be produced during the January-March 2019 period. Previously, it was predicted that Apple will produce about 47 million to 48 million units during this time frame. The company had shipped 52 million iPhones during the same period in 2018.
Although things are not looking up for Apple right now, the situation is largely the same for other bigwigs, including Samsung. This is one reason why Apple has increased its attention on its services to rely less on the beleaguered smartphone unit, and the efforts seem to be paying off as the iOS App Store raked in record-breaking revenue during the holidays this year.
Apple is also being investigated by two law firms, and a class action lawsuit might be held if there is enough evidence found that the company withheld vital information from its shareholders. As of right now, AAPL is being traded at $150.75 per share, which is actually a jump as the company’s stock price previously closed at $147.93
News Source: Nikkei