According to reports, Apple is informing their suppliers to cut production on their new iPhones by 10% over the course of the next upcoming three months, according to Nikkei.
Apple made this request within it’s suppliers late last month asking them to produce fewer iPhones for the January March quarter.
This is the second time that Apple has recently cut down on iPhone production apparently, and Nikkei also says that Apple made this decision prior to issueing their guidance downgrade just last week.
This production revision applies to all of Apple’s new iPhone versions, including the iPhone XS, XS Max and XR. “The level of revision is different for each and every supplier and also depends on the product mix they actually supply”, an unnamed source had told Nikkei.
This is the second time the source said that the overall production volume of both new and old iPhones will be reduced by apparently 40 to 43 million units for the January-March quarter, down from an earlier projection to 47 to 48 million units.
Because of weak iPhone sales in China, this affects the U.S. – China trade war, which means the cheap battery replacements, and other factors, while Apple has cut Q1 2019 revenue guidance to $84 billion, down from $89 to $93 billion guidance issued in November, also with the production cuts, these issues may continue further into the year.
The CEO of Apple, Tim Cook, said just today that these reports suggest the iPhone XR is a clop or selling poorly is “bologna”, and that the device has been the best selling iPhone every day ever since it was released.