When overall smartphone market is facing tough times, Apple, which is touted as a global leader, paints no different picture. As per the reports circulated by the Wall Street Journal, Apple has cut the orders for its recently released iPhone XS and iPhone XR.
While the brand itself suffers from this global slowdown, its suppliers too face hard times as Apple cannot make an accurate forecast about the demand of its three smartphones: iPhone Xs, iPhone Xs Max, and iPhone Xr.
Apple Not Sure About Demand for Its Three Smartphone Models
More than Apple, its suppliers seem to be taking a heavy toll following the apparent slump in the mobile market. On the condition of anonymity, a source close to Apple revealed to WSJ, “Growth fixes a lot of sins. When it slows, rocks start to show up in the bottom of the ocean.”
Apple Suppliers believe that “doing business with Apple is very risky as it often reverses what it has promised.” Does it mean Apple fails to keep promises made to suppliers?
Does the slowdown affect Apple? Analysts believe that Apple seems to be less worried about the slow activities of the smartphone market globally. There is a sound reason behind this: Apple has raised the average sale price of its handsets (from iPhone X onwards). Even as the company suffered recent stock price setbacks, it has successfully covered the loss by selling expensive iPhones.
Apart from unit sales, Apple has started to pay more attention to its services like iTunes, iCloud, and others.
WSJ reports indicate that Apple has cut its iPhone XR orders by up to one-third. The other two models – iPhone XS and XS Max – have also suffered cuts.
Is it a bubble?
Yes, if we consider the historical data. Many reputed analysts think that one should not rely on reports based on Apple’s supply chain. Though WSJ is a reputed publication, its reports can be questioned.
When iPhone X was launched last year, many industry insiders predicted its likely failure, but the phone turned out to be a popular device among users.
Perhaps, Apple’s performance is best analyzed in this article, wherein it is mentioned that iPhone’s form maybe down, but class remains intact as ever.
There is a strong probability that iPhone XS and XR will impress the people and prove the analysts wrong in the long run.
When Apple stopped releasing the number of unit sales, experts thought Apple is facing tough times in selling their devices. However, the company proved them wrong by selling record-break iPhones during Singles’ Day in China. It is also believed that Apple launched iPhone XR for the third-world countries. Whatever it is, Apple still holds an esteemed place among the hearts of its users and those, who are not using Apple products.
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