Apple to cut iPhone production by 10%, says Nikkei

By: |
Published: January 9, 2019 6:12:34 PM

Apple Inc, which slashed its quarterly sales forecast last week, has reduced planned production for its three new iPhone models by about 10 percent for the January-March quarter.

Apple, Apple iPad Pro, Apple iPad Pro 2018, MacBook, MacBook Air 2018, Apple iPad Pro 2018 price, MacBook Air 2018 price, Wi-Fi, Wi-Fi+, Wi-Fi+ Cellular model, industry newsMany analysts and consumers have said the new iPhones are overpriced. (Reuters)

Apple Inc, which slashed its quarterly sales forecast last week, has reduced planned production for its three new iPhone models by about 10 percent for the January-March quarter, the Nikkei Asian Review reported on Wednesday. That rare forecast cut exposed weakening iPhone demand in China, the world’s biggest smartphone market, where a slowing economy has also been buffeted by a trade war with the United States.

Many analysts and consumers have said the new iPhones are overpriced. Apple asked its suppliers late last month to produce fewer-than-planned units of its XS, XS Max and XR models, the Nikkei reported, citing sources with knowledge of the request.

Also read: Five fiscal failures for which Modi govt can’t blame RBI: GST and more

The request was made before Apple announced its forecast cut, the Nikkei said. The bleaker sales outlook, which Apple attributed to weak China demand, triggered a broad sell-off in global stock markets.

Market research firm Canalys estimates shipments fell 12 percent in China last year and expects smartphone shipments in 2019 to dip another 3 percent, to below 400 million for the first time since 2014.

Overall planned production volume of both old and new iPhones is likely to be cut to a range of 40 million to 43 million units for January-March period, from an earlier projection of 47 million to 48 million units, the Nikkei reported, citing one source familiar with the situation.

Apple did not respond to a Reuters request for comment. The report comes after chip suppliers Samsung Electronics Co Ltd and Skyworks Solutions Inc flagged weak first-quarter chip demand for smartphones.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition