Apple to cut production of iPhone by 10 per cent

Apple to cut production of iPhone by 10 per cent

According to a report by Nikkei Asian Review on Wednesday, planned production for Apple Inc's (AAPL) latest iPhone models for the first quarter has been cut by about 10%. Apple is reportedly cutting the overall production target of both old and new iPhones, including the XS Max, XS, and XR, by around 10%.

"Lower than anticipated iPhone revenue, primarily in Greater China, accounts for all of our revenue shortfall to our guidance and for much more than our entire year-over-year revenue decline".

Nikkei said Apple has reduced its planned production for the period and will only ship about 40 million to 43 million devices, instead of the 47 million to 48 million units it had originally reckoned.

First, we had iPhone component makers slash demand forecasts late a year ago. Cupertino probably decided on that initial goal based on previous sales, seeing as it sold 52.21 million units within the same period past year.

While Cook suggested that pricing isn't an issue, Apple today offered Chinese vendors a price cut for all 2017 and 2018 iPhone models in an attempt to counter the declining sales.

Market research firm Canalys estimates shipments fell 12 percent in China past year and expects smartphone shipments in 2019 to dip another 3 percent, to below 400 million for the first time since 2014. The newest iPhone lineup isn't selling as well, and that's having a huge impact.

"User familiarity has always worked for Apple, but that also mean that users keep their phones around longer", Mueller said. As a group, analysts predict that Apple Inc. will post 12.13 earnings per share for the current year. "If it wants to reverse the trend, it needs a feature-rich, compelling iPhone cycle in 2019 that also needs to be priced right". On a related note, research firm Counterpoint says that although iPhone XR could be the company's best-selling handset till date, it has not yet matched up to the sales performance of the iPhone X that came out in 2017.

Chief Executive Tim Cook reiterated in an interview with CNBC on Tuesday that India was a major focus for Apple.

Apple (NASDAQ:AAPL) last released its quarterly earnings results on Thursday, November 1st.