Technology: Apple is reportedly cutting iPhone production by 10 percent - PressFrom - US
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TechnologyApple is reportedly cutting iPhone production by 10 percent

15:06  09 january  2019
15:06  09 january  2019 Source:   engadget.com

Apple, suppliers tumble on signs of weak iPhone demand

Apple, suppliers tumble on signs of weak iPhone demand Major suppliers to Apple Inc.’s iPhone fell Monday, as investors fretted that one of the most important product lines in the technology sector was seeing weak demand. The latest warning sign was Lumentum Holdings Inc. cutting its second-quarter outlook after one of its largest customers asked to “meaningfully reduce shipments” for previously placed orders. Lumentum didn’t name the customer, but Apple is its biggest, according to Bloomberg supply-chain data. Shares of Lumentum plummeted 27 percent in pre-market trading, while Apple dropped 2.6 percent. Oclaro Inc., which is being bought by Lumentum, lost 9.9 percent.

Apple is reportedly cutting the overall production target of both old and new iPhones , including the XS Max, XS and XR, by around 10 percent . Nikkei says that instead of going forward with its planned production of 43 million units, the company is reducing its target number for the quarter to

Faced with a revenue shortfall stemming from disappointing demand for iPhones and a weakening of its business in China, Apple reportedly is cutting its iPhone production by 10 percent during the first quarter of this year. The Nikkei Asian Review reported Wednesday that Apple told its product

Apple is reportedly cutting iPhone production by 10 percent

Apple lowering its earnings guidance by a whopping $5 billion is probably a big enough indicator that the tech giant is feeling the effects of struggling smartphone sales and the US-China trade war. A new Nikkei report makes it even clearer that the tech giant isn't immune to market saturation, though: According to the publication, Cupertino has asked its suppliers to manufacture fewer iPhones than planned for January to March. Apple is reportedly cutting the overall production target of both old and new iPhones, including the XS Max, XS and XR, by around 10 percent.

According to one of Nikkei's sources, "the level of revision is different for each supplier and depends on the product mix they supply." In addition, the tech giant apparently told suppliers to lower its manufacturing target even before it adjusted its earnings guidance.

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The Cupertino-based tech giant has reportedly asked its manufacturing teams to decrease the production of its iPhones . According to the most recent reports, Apple has ordered cutting down the production of all of its iPhones by as much as 10 percent from its previous estimates.

Apple has reportedly cut production plans for its 2018 iPhones again. A week after issuing a sales warning, Apple reportedly slashed its iPhone production for January to March by 10 percent .

Nikkei says that instead of going forward with its planned production of 43 million units, the company is reducing its target number for the quarter to 40 million iPhones. Those numbers are significantly lower than the 47 to 48 million units Apple originally wanted to manufacture for the first three months of 2019. Cupertino probably decided on that initial goal based on previous sales, seeing as it sold 52.21 million units within the same period last year.

In November 2018, Nikkei also reported that Apple canceled 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.

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