Apple Reportedly Cutting iPhone Production | KCBS 740AM | 106.9 FM

Apple Reportedly Cutting iPhone Production | KCBS 740AM | 106.9 FM

The Nikkei writes: "Apple is cutting its current production plan for new iPhones by about 10% for the next three months in a sign that the USA smartphone maker is expecting a further hit this year, just a week after its market-shaking revelation that it would miss revenue forecasts at the end of 2018".

Nikkei said Apple has reduced its planned production for the period and will only ship about 40 million to 43 million devices, instead of the 47 million to 48 million units it had originally reckoned. The production cut was announced shortly after CEO Tim Cook announced revised revenue expectations, the report continues, and it concerns all new iPhone models, including iPhone XS, iPhone XS Max, and iPhone XR.

Apple cut its quarterly sales forecast for the first time in 16 years last week, saying that iPhone sales were lower than expected, particularly in China. However, Cook denies that the iPhone XR is a flop.

Cook blamed the significant fall in smartphone sales in China for the iPhone's struggle, as well as things like "foreign exchange headwinds". Global Financial Private Capital LLC acquired a new stake in shares of Apple during the 1st quarter worth approximately $13,771,000.

The Nikkei said Apple could not be reached for comment on the information.

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

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

Reuters reported last month that Apple will begin assembling its top-end iPhones in India through the local unit of Foxconn this year, citing a person familiar with the matter.

Because Apple preannounced slower sales in Q4, the Nikkei is making out that Apple ordering 10 less iPhone for Q1 is some huge revelation.

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