Apple is believed to have cut its iPhone production plans by about 10 percent. This would apply to the January – March quarter and is applicable to all of its manufacturing partners that produce the iPhone.
No points for guessing this is in view of the less than expected demand for its latest generation of smartphones. Plans to cut production will also apply to the latest crop of iPhones – the iPhone XS, XS Max, and XR. The production cuts will however not be uniform for all the manufacturers. Instead, that is going to depend on the different devices they come up with.
In any case, it is likely to be 40 to 43 million less iPhones produced during Q1, 2019. That again is slightly better than an earlier estimate that had projected production cut to be to the tune of about 47 to 48 million units.
Sale of iPhone units lagging behind expectations have always been rumored shortly after they were launched in September 2018. Initially, Apple might have tried brushing aside the tittle-tattle by foregoing the company trend of disclosing the sale statistics of its devices. However, it wasn’t long after that the company revealed all is not ok with their latest iPhone devices, with demand lagging sale estimates by a significant margin.
That again is being attributed to Apple not being innovative enough with the new iPhones, with many accusing the company of offering too little to warrant on upgrade. The relatively high cost of the new iPhone isn’t helping things either. If those aren’t enough, the recent trade spat between the US and China too is believed to have cast a cloud on iPhone sales in China.
Tim Cook too has admitted they have had a severe blow on account of the weakening sales in China which has traditionally been one of the biggest overseas market of Apple iPhone other the US itself. The company though is putting up a strong face and has brushed aside reports of the iPhone XR being a failure so far, claiming instead the base iPhone model being one of its biggest sales success in recent times.