NAR: Apple drops iPhone parts orders by 20%; supplier stocks dip

Marco Green
June 9, 2018

But a 20 percent cut in orders could suggest that Apple prefers to maintain existing prices and take a hit on unit sales.

Apple's stock price fell as much as almost 2% in Friday's trading, pulling the Nasdaq lower by 0.45%.

Last year, Apple placed orders to prepare 100M production units of the iPhone 8 models and the iPhone X. Sources say Apple expects 80M total shipments of the new iPhones. The latest news sent Apple's stock down 2.2 percent to a value $189.20.

The Cupertino, California, company told parts suppliers to produce 20% fewer components for versions of its iPhone X and iPhone 8, Japanese financial outlet Nikkei reported, citing sources familiar with the matter.

"At least part of this lower order forecast probably relates to Apple just being a little more realistic", he said.

Apple did not immediately respond to a request for comment on Nikkei's report. US -based suppliers Advanced Micro Devices, Micron Technology Intel, Broadcom Inc and Qualcomm Inc were all down between 1 percent and 3 percent. The iPhone X's high starting price of $999 has enabled Apple to hit record average selling prices for iPhones, and reports have conflicted about whether this year's top models will be equally or less expensive.

Kuo said that Apple was likely to launch a 6.5-inch OLED "IPhone X Plus", a second generation of iPhone X and an iPhone with a 6.1 inch screen.

Apple may well be preparing for smartphone fatigue with its conservative estimate, or this report might be flat out wrong like those which pegged the firm's iPhone X as a failure past year.

Despite the media reports that demand for the $1,000 iPhone X has fallen, Apple's market cap has continued to rise and is approaching $1 trillion.

Other reports by Click Lancashire

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