Apple reportedly cuts iPhone production by 10 percent for first quarter

Just a week after slashing revenue forecasts for the first quarter of 2019, Apple is now cutting down on the production of new iPhones being had a tough time on the market. As a Nikkie Report, makes it even clearer that the tech giant not enough immune to withstand to the market saturation. According to the publication, Apple has told its suppliers to reduce the iPhone production volume both old and new iPhones between January and March by almost 10 per cent.

Production of its new models, iPhone XS, iPhone XS Max, and iPhone XR, and also the old ones which are estimated to be 47 million to 48 million in January to March is now will remain at around 40 to 43 million.

This is not the first time to the Cupertino giant, in the span of two months Apple has had to cut down production volume of iPhones, signalling a deeper problem in its value chain. The level of revision will reportedly be “different for each supplier and depends on the product mix they supply.”

Last month, Citi Research estimated that the production of the iPhone XS Max (the priciest model) would be cut down by almost half in Q1 2019.

Last year January-March quarter, iPhone overall production volume was marginally better at 52.2 million units and now target volume is down to around 40 million units — a significant decline that has been further cemented by Apple’s refusal to disclose iPhone sales figures as on year on year the contraction has been more than 20 per cent.

In November 2018, Nikkei also reported that Apple cancelled a planned production increase for the iPhone XR. When asked about reports that Apple’s affordable smartphone is a flop in a recent interview, though, Tim Cook said those reports aren’t true and that the XR “has been the most popular iPhone every single day” since it launched.

Tim Cook announced that Apple was revising its revenue expectations for Q1 2019 on account of low demand in Greater China, it sent the stock into a free fall. The Apple CEO also said, however, that he remains optimistic about a resolution between the United States and China in the ongoing trade dispute between the countries.

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