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techkenyot.com March 26, 2019


Apple slashes iPhone production

10 January 2019, 09:09 | Hattie Nash

Apple slashes iPhone production

Apple Cuts First Quarter Production Plan for New iPhone Models by 10 Percent Report

That rare step exposed weakening demand in China for Apple's iPhones amid a slowing economy, which has also been buffeted by a bruising trade war with the United States.

Apple is having a hard time selling iPhones to the consumers and even with new features, the company is unable to sell them.

The Nikkei Asian Review claims that reliying on sources in the production chain, this negative readjustment would affect all the iPhone models still on the market, including the new iPhone Xr, Xs and Xs Max. The request was made before Apple cut its forecast last week. The bleaker sales outlook, which Apple attributed to weak China demand, triggered a broad sell-off in global stock markets.

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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 10% to 40 million.

Apple's iPhone suppliers include Taiwanese assemblers Hon Hai Precision Industry Co Ltd (Foxconn) and Pegatron Corp.

Shares of Foxconn, the world's biggest electronics contract manufacturer, closed up 1.6 percent, while Pegatron closed up 1.3 percent.

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Among iPhone component suppliers in Asia, South Korea's LG Display Co Ltd 034220.KS closed up 0.5 percent, while Japan Display Inc 6740.T was flat. Cupertino probably decided on that initial goal based on previous sales, seeing as it sold 52.21 million units within the same period a year ago.

That's in addition to a similar move reported by The Wall Street Journal in November - making the recent development Apple's second production cut in just a few months after the launch of the iPhone XS.

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