Published: Sat, January 12, 2019
Medicine | By Tracy Klein

Apple is reportedly cutting iPhone production by 10 percent

Apple is reportedly cutting iPhone production by 10 percent

Under the revised plan, overall planned production volume of both old and new iPhones will be reduced to about 40-43 million units for the January-March quarter from an earlier projection of 47-48 million units.

Apple's newest smartphone, the iPhone XR made a whole lot of buzz previous year when it launched because of its different design and looks along with the lower than the usual price tag. But it's also a drop of over 20 percent when you look at the 52.21 million iPhones that Apple sold in the year-ago quarter. But if even "affordable" iPhone models like the XR are retailing for £749 / $749 (AU$1,229), with flagship models pushing into four-figure sums, Apple may be testing the determination of its fan base a bit too hard.

Apple blamed the growing tension on import fees between China and the United States as one of the reasons iPhone sales are going down. 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.

Not only have slowing sales decimated Apple's market cap in recent weeks, but they're also causing problems for iPhone suppliers. Next, Apple (NASDAQ:AAPL) pulled a rare move (at least for Apple) and lowered its own guidance down just two days in the new year.

Apple representatives didn't respond to a request for comment.

The report comes after chip suppliers Samsung Electronics Co Ltd and Skyworks Solutions Inc flagged weak first-quarter chip demand for smartphones. And considering that Foxconn now produces most of the Apple products, a drop in monetary revenue was ultimately inevitable, despite the fact that the producer has other customers in its range.

Now a new report from Nikkei confirms that Apple is cutting down production by 10%.

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

The biggest iPhone Apple had to offer, that is the iPhone XS Max, fared the worst sales.

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