Apple cuts 1Q production for new iPhones by 10 pct
Apple cuts 1Q production for new iPhones by 10 pct
Apple chief executive Tim Cook
11 January, 2019, 03:38
"We believe the economic environment in China has been further impacted by rising trade tensions with the United States".
Suppliers were told about the reduction - affecting the iPhone Xr, Xs and Xs Max - at the end of December, the second cut in as many months, Nikkei Asian Review said.
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 request came before Apple CEO Tim Cook wrote a letter warning investors that the company's fiscal first-quarter revenue would be weaker than expected, Nikkei noted. Apple suppliers, including Britain's Renishaw, were hit by the sell-off.
Market research firm Canalys estimates shipments fell 12 percent in China previous year and expects smartphone shipments in 2019 to dip another three percent, to below 400 million for the first time since 2014.
Sources say that having initially projected production numbers of around 47 to 48 million units, Apple is now expecting to produce somewhere between 40 and 43 million iPhones.
Apple did not immediately respond to a Reuters request for comment. Foxconn is said to collect almost 80 percent of its revenue from Apple products, and it's clear that since both Apple component suppliers (who would be selling to Foxconn) and Apple itself slashed forecasts that lagging iPhone sales are to blame here.
Shares of Foxconn, the world's biggest electronics contract manufacturer, were up 1.6 percent while Pegatron was up 1.3 percent.
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