Published: Fri, January 11, 2019
Health Care | By Cedric Leonard

Apple has reportedly reduced new iPhone production - again

Apple has reportedly reduced new iPhone production - again

These numbers are out when Apple has cut down expectations on the first quarter 2019 (October to December 2018) revenue. And considering that Foxconn now produces most of the Apple products, a drop in monetary revenue was ultimately inevitable, despite the fact that the producer has other customers in its range.

The Cupertino, California-based company is now targeting overall production volume of both old and new iPhones of 40 million to 43 million units in the March quarter, down from 47 million to 48 million previously, the Nikkei reported, citing another person familiar. The Digitimes report of the day noted that "the slower-than-expected sales of iPhone 8 and iPhone 8 Plus have dragged down the momentum for the iPhone X". The surprise warning triggered a broad sell-off in global stock markets. That appears to tally with estimates from research firm Canalys, which has forecast smartphone shipments in China to fall by 3 percent this year, according to Reuters. Apple's revenue for the quarter was up 19.6% compared to the same quarter previous year.

The report comes after chip suppliers Samsung Electronics and Skyworks Solutions flagged weak first-quarter chip demand for smartphones.

China trade talks wrap up, with outcome unclear
But the statement did not say if the two sides have reached any agreement during the talks that concluded on Wednesday. A reduction in Chinese imports of USA goods came quickly after the retaliatory imposition of tariffs, the data show.

The tech giant's iPhone suppliers include Hon Hai Precision Industry Co Ltd (also known as Foxconn) and Pegatron Corp of Taiwan. 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.

As Chinese demand has faltered, Apple has increased focus on India, which recently overtook the United States as the world's second-largest smartphone market.

Apple's Chief Executive Officer Tim Cook told CNBC on Tuesday that "naysayers on Wall Street were under-appreciating the Company's growing ecosystem of devices and services". But it's also a drop of over 20 percent when you look at the 52.21 million iPhones that Apple sold in the year-ago quarter.

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