Published: Wed, November 21, 2018
Economy | By

Stocks Dive on iPhone Concerns: Production Plans Cut Again and Again

Stocks Dive on iPhone Concerns: Production Plans Cut Again and Again

A lower-than-expected demand for the new iPhones and Apple's decision to offer more models has made it more hard to anticipate the number of components and handsets the company needs, according to the paper.

Apple shocked investors a few weeks ago with a sales forecast for the Christmas quarter below Wall Street expectations, prompting certain suppliers to issue warnings that pointed to weakness in new iPhone sales.

Weaker demand in China is also reportedly another reason for the cuts.

The reduction in iPhone production makes it clear that Apple, with its enormously loyal customers, is not out of the market yet, but there hasn't been stable growth for a long time.

Apple recently made the decision to stop disclosing iPhone sales numbers as part of its quarterly earnings reports.

Apple cuts production orders for all three new iPhone models

Apple's share price has declined over 20% from its October peak, costing the company over $US220 billion in market value.

Citing multiple sources, the publication says that Apple has cut orders for "all three of the iPhone models that it unveiled in September"-meaning the iPhone XS, iPhone XS Max, and the iPhone XR".

Analysts at Cowen & Co expect a modest hit from iPhone production cuts on memory chipmakers like Western Digital Corp.

Micron Technology Inc fell 1.7 per cent after a report that Chinese authorities have alleged "massive evidence" of antitrust violations by the world's top three memory chip makers - the latest industrial spat that threatens to upset global trade relations.

Apple did not respond to a request for comment outside regular business hours.

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