According to a report from the Japanese media Nikkei, Apple has asked its suppliers to cut production of the 2018 iPhone by 10% in the next three months. It is understood that Apple requested suppliers at the end of last month to reduce their iPhone production in the January-March quarter.
This is already the second time Apple has to cut iPhone production. The report pointed out that Apple made this decision before it announced last week that it would cut its revenue forecast for the first quarter of FY 2019. iPhone models that cut production include the latest iPhone XS, iPhone XS Max, and iPhone XR.
Various factors such as weak iPhone sales in the Chinese market, economic slowdown the ongoing trade war, and cheap battery replacement, Apple just recently lowered its revenue forecast for the first quarter of 2019 from US$89 billion in November last year to US$84 billion. With the cut in iPhone production, Apple's revenue in this year may also be affected.
Nevertheless, Apple CEO Tim Cook said on Wednesday that the report that the iPhone XR is a failed product and suffered from poor sales is not accurate, touting the device is the best-selling model every day since the launch. It's unclear who is telling the truth, though I would lean to Tim Cook, considering Nikkei is not as often as reliable.
Various factors such as weak iPhone sales in the Chinese market, economic slowdown the ongoing trade war, and cheap battery replacement, Apple just recently lowered its revenue forecast for the first quarter of 2019 from US$89 billion in November last year to US$84 billion. With the cut in iPhone production, Apple's revenue in this year may also be affected.
Nevertheless, Apple CEO Tim Cook said on Wednesday that the report that the iPhone XR is a failed product and suffered from poor sales is not accurate, touting the device is the best-selling model every day since the launch. It's unclear who is telling the truth, though I would lean to Tim Cook, considering Nikkei is not as often as reliable.
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