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

TechnologyApple is reportedly cutting iPhone production by 10 percent

15:06  09 january  2019
15:06  09 january  2019 Source:

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 having a tough time on the market - following its lowered earnings guidance Cupertino is reportedly cutting its iPhone production as well. The original plan for 48 million sold units between January and March, later reduced to 43 million, is now taking another hit and is cut with an additional

This could be the result of Apple ’s changing iPhone strategy, which has focused more recently on Last quarter, the company saw a 29 percent revenue increase in its smartphone division with a 0 There’s a good chance that we’ll see a similar pattern with the iPhone XS and iPhone XR models

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.

You can now buy a SIM-free iPhone XR

You can now buy a SIM-free iPhone XR You can get an unlocked iPhone XR that’s not tied to a carrier.

Apple will be decreasing the production of the iPhone by 10 percent in the first quarter of 2017, according to a new report. A year ago, Nikkei reported that Apple had chosen to cut production of the iPhone 6S and 6S Plus by 30 percent. Declines in production could mean sales of the phones

Could Apple ’s decision to release the iPhone 7 that’s so similar to the iPhone 6 and 6s be a mistake? Some have certainly suggested that it was, although So much so that if the report is accurate, Apple is looking to cut back production by as much as 10 %. Now 10 % might seem like a lot, but given the

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.

Retailers in China are slashing iPhone XR and iPhone XS prices, report says.
Apple acknowledged a few days ago that iPhone sales in China were weaker than expected, as the company had to lower its guidance for the first quarter of fiscal year 2019. 

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