Apple reportedly cuts iPhone production by 10 percent for first quarter

Marco Green
January 10, 2019

This puts Apple's decision to stop disclosing the number of iPhone it sells for each quarter in a completely new light, given that a 10% cut in production for the new iPhone models would translate into a whopping 20% YoY contraction from "the 52.21 million units Apple sold in January-March 2018", as reported by Nikkei Asian Review.

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.

Rumor has it that Apple is scaling back its production plans for its most recent fleet of handsets - the iPhone XS, iPhone XS Max, and iPhone XR - by around 10%.

That rare step exposed weakening demand in China for Apple's iPhones amid a slowing economy, which has also been buffeted by a bruising trade war with the United States. Hot on the heals on this comes the news that Apple is cutting production of new iPhones for the current quarter by a significant amount. The surprise warning triggered a broad sell-off in global stock markets. This figure is derived from sources apparently familiar with this request, and applies to the first 3 months of 2019.

Apple did not immediately respond to a Reuters request for comment.

Apple's iPhone suppliers include Taiwanese assemblers Hon Hai Precision Industry Co Ltd (Foxconn) (2317.TW) and Pegatron Corp (4938.TW). It is going to be hard to track the precise numbers as Apple announced late a year ago that it would no longer be sharing details of iPhone shipment figures.

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

Other reports by Click Lancashire

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