Published: Thu, January 10, 2019
Economy | By

Apple is reportedly cutting iPhone production by 10 percent

Apple is reportedly cutting iPhone production by 10 percent

A new report claims that Apple has cut production of new iPhones by another 10 percent in the wake of its blockbuster sales warning.

This puts Apple's decision to stop disclosing the number of iPhone it sells for each quarter in a completely new light, given that a 10% cut in production for the new iPhone models would translate into a whopping 20% YoY contraction from "the 52.21 million units Apple sold in January-March 2018", as reported by Nikkei Asian Review. It is perhaps interesting-and legally problematic-that that letter never addressed ongoing problems. Hot on the heals on this comes the news that Apple is cutting production of new iPhones for the current quarter by a significant amount. But if even "affordable" iPhone models like the XR are retailing for £749 / $749 (AU$1,229), with flagship models pushing into four-figure sums, Apple may be testing the determination of its fan base a bit too hard.


Sources say that having initially projected production numbers of around 47 to 48 million units, Apple is now expecting to produce somewhere between 40 and 43 million iPhones.

Samsung surprised the market on Tuesday with an estimated 29 percent drop in quarterly profit, blaming weak chip demand in a rare commentary issued to "ease confusion" among investors already fretting about a global tech slowdown. A small slump in iPhone sales aside, the company has seen good sales of iPads, Apple Watch, AirPods, and Macbooks - with the diversity of products ensuring protection against unexpected dips in revenue. 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.

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