Apple Reportedly Slashes iPhone Production Plans This Quarter: Nikkei

Lloyd Doyle
January 10, 2019

That rare step exposed weakening demand in China for Apple's iPhones amid a slowing economy, which has also been buffeted by a bruising trade war with the United States. And it applies to all of them, the iPhone XS, XS Max, and XR. "We did not foresee the magnitude of the economic deceleration, particularly in greater China", Apple CEO Tim Cook said in a letter to investors when announcing the cut in revenue forecast. The surprise warning triggered a broad sell-off in global stock markets.

A different source told the publication the revised plan reduces iPhone production volume to about 40 million to 43 million units from 47 million to 48 million units for the first quarter.

Apple did not immediately respond to a Reuters request for comment.

The report comes after chip suppliers Samsung Electronics and Skyworks Solutions flagged weak first-quarter chip demand for smartphones. That's a drop of at least 10 percent.


Apple's iPhone suppliers include Taiwanese assemblers Foxconn and Pegatron who are not moving to confirm the reports.

There was little reaction to the report among shares of major Apple suppliers, as the market has already digested production cuts after the iPhone maker's forecast cut, analysts said. It is going to be hard to track the precise numbers as Apple announced late past year that it would no longer be sharing details of iPhone shipment figures.

That's in addition to a similar move reported by The Wall Street Journal in November - making the recent development Apple's second production cut in just a few months after the launch of the iPhone XS.

Other reports by Iphone Fresh

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