Apple Cuts New iPhone Production by 30 Percent

Marco Green
November 20, 2018

Apple surprised its investors when it forecasted lower-than-expected iPhone sales predictions for the upcoming holiday season, and Christmas quarter.

Weaker demand in China is also reportedly another reason for the cuts. Taken on its own, this could be a sign that iPhone sales are slowing down as prices begin to rise.

"In addition to weakness in demand for Apple's products in China and other emerging markets it also looks like the balance of price and features in the iPhone XR may not have been well-received by users outside of the United States", wrote Goldman's Rod Hall.

Apple's largest assembler of iPhones in China, thousands of workers have voluntarily left earlier than they meant to after Foxconn cut overtime hours that are typically available during peak production periods, people familiar with the matter said.

The stock was the biggest drag on the technology sector, which fell 3.3 per cent and was the top loser among the 11 major S&P sectors trading in the red.

Apple cuts production orders for all three new iPhone models
Apple Introduced Its New iPhones Two Months Ago. It's Already Slashing Production Orders, Says Report

The Philadelphia SE Semiconductor index dropped 1.9%, extending losses from the previous session after an underwhelming forecast from Nvidia Corp weighed on the sector.

Boeing Co and Caterpillar Inc, seen as trade sensitive stocks, fell 4.8 per cent and 2.5 per cent, respectively.

China's Inc slipped 3% after reporting third-quarter revenue below analysts' estimates on sluggish sales in its core e-commerce business. Declining issues outnumbered advancers for a 1.79-to-1 ratio on the Nasdaq.

The S&P index recorded 26 new 52-week highs and 16 new lows, while the Nasdaq recorded 16 new highs and 123 new lows. Only the headline has been changed.

Other reports by Click Lancashire

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