Apple Cutting iPhone production 10%

Henrietta Brewer
January 12, 2019

In an interview with CNBC yesterday, Cook said the XR has been Apple's most popular iPhone every day. These numbers are out when Apple has cut down expectations on the first quarter 2019 (October to December 2018) revenue.

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.

That rare forecast cut exposed weakening iPhone demand in China, the world's biggest smartphone market, where a slowing economy has also been buffeted by a trade war with the United States.

Cook blamed the significant fall in smartphone sales in China for the iPhone's struggle, as well as things like "foreign exchange headwinds".

The report today from Nikkei Asian Review comes about a week after Apple Chief Executive Tim Cook shocked investors by saying the company was likely to miss its fiscal first-quarter revenue target by about $9 billion.

Reuters reports that market research firm Canalys is expecting smartphone shipments in China to fall three percent in 2019 after a 12-percent decline previous year. The company said during its last earnings call in November that it would stop reporting iPhone unit sales when it reports its first-quarter results.

This decline would represent a year-on-year contraction of more than 20 percent from the 52.21 million units Apple sold in January-March 2018. Summit Trail Advisors LLC raised its stake in Apple by 17,669.4% during the 1st quarter.

Apple did not immediately respond to a Reuters request for comment. Apple suppliers, including Britain's Renishaw, were hit by the sell-off.

Among iPhone component suppliers in Asia, South Korea's LG Display Co Ltd was up 0.5 percent, while Japan Display Inc was flat. 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. It is going to be hard to track the precise numbers as Apple announced late previous year that it would no longer be sharing details of iPhone shipment figures.

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