March 20, 2019

Apple reportedly cuts iPhone production by 10 percent for first quarter

11 January 2019, 03:43 | Randall Craig

After a disastrous quarter, Apple is cutting iPhone production

Apple cuts 1Q production for new iPhones by 10 pct.: Report

Apple has reduced production for its three new iPhone models by about 10 percent for the January-March quarter, according to the Nikkei Asian Review. And it applies to all of them, the iPhone XS, XS Max, and XR. "We did not foresee the magnitude of the economic deceleration, particularly in greater China", Apple CEO Tim Cook said in a letter to investors when announcing the cut in revenue forecast. Apple took a direct hit from the issue and even lost its number one spot to Microsoft who in turn lost it to Amazon.

Citing sources at Apple's suppliers, Nikkei says that the consumer electronics giant asked those supplies late last month for further cuts in the production of key iPhone components.

Market research firm Canalys estimates shipments fell 12 percent in China previous year and expects smartphone shipments in 2019 to dip another 3 percent, to below 400 million for the first time since 2014.

Sources say that having initially projected production numbers of around 47 to 48 million units, Apple is now expecting to produce somewhere between 40 and 43 million iPhones.

Apple's iPhone suppliers include Taiwanese assemblers Hon Hai Precision Industry Co Ltd (Foxconn) and Pegatron Corp.

As Chinese demand has faltered, Apple has increased focus on India, which recently overtook the United States as the world's second-largest smartphone market. It is going to be hard to track the precise numbers as Apple announced late previous year that it would no longer be sharing details of iPhone shipment figures. Apple sold 52.21 million iPhones in the same period a year ago, according to Nikkei.

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