For Apple, the calendar year opens with some ominous dates. First, the company revealed its profit warning for the last quarters of 2018. And now the iPhone maker is cutting its current production plan for new iPhones by 10%.
According to the NIKKEI ASIAN REVIEW, Apple is reducing its production plan for the next three months. This revelation comes at the heels of the company’s profit warning announcement just a week ago.
Apple Asks Suppliers to Manufacture Fewer of New iPhones
The source says that “Apple late last month asked its suppliers to produce fewer of its new iPhones than planned for January-March quarter,” i.e., the first quarter of 2019.
This is the second time Apple has clipped its planned production for its flagship devices.
Notably, Apple issued the warning on January 2 this year. In its warning, Apple said revenues for the final three months of 2018 would come in at around $84 billion, instead of previous guidance of $89 to $93 billion.
Interestingly, that was the first reduction in revenue guidance in 16 years. This has generated events of sell-off in the stock markets across the world as investors worried and took it as another sign of a slowing Chinese economy.
It is now known to all that Apple has revised its future production for all new iPhone models, which include iPhone Xs, iPhone Xs Max, and iPhone XR. As per the sources close to the matter said, “The level of revision is different for each supplier and depends on the product mix they supply.”
This revised reduction in production, Apple is likely to reduce the production of old and new iPhones to nearly 40 million to 43 million for the first quarter of 2019; earlier, the projection was 47 million to 48 million units.
This cut in production would mean year-on-year shrinkage of more than 20% from 52.21 million units Apple had sold in the first quarter of 2018.
- Mixed Feelings for Apple: iPhone XR Best Selling Phone But Overall Sales Down
- After Apple, Samsung Also Hit By Slump in Smartphone Sales in China
- Apple to Offer iTunes Video and AirPlay 2 to Samsung Smart TV
- Another Rumor for iPhone XI 2019: Three Weirdly Arranged Camera Lenses Expected
Do you think slump in iPhone sales is due to saturation in the smartphone market? Share your feedback with us on Facebook, Twitter, and Telegram. Also, don’t forget to download our app to read other exciting news stories on iPhone and iPad.