14 January 2019
Apple Inc has cut the planned production for its three new iPhone models by about 10% for the March quarter, due to weak demand. The company has slashed its quarterly sales forecast and attributed the low demand to slow down in the Chinese smartphone market, as well as the bruising trade war brewing between China and the United States.
Apple’s CEO Tim Cook has stated in a letter to the investors that the company expected to lose $9 billion in revenue in Q1, 2019. the Cupertino-based company is cutting down productions for new iPhones by 10 percent for the current quarter. Apple has also stated that it will not be revealing sales numbers from the first quarter of 2019.
A number of analysts and consumers had stated that the new iPhones were overpriced, which has also attributed to the low demand. Last month, Apple had asked its suppliers to produce fewer-than-planned models of the XS, XS Max, and XR. The request was made by Apple before it had indicated that it would cut its sales. The warning had triggered a broad sell-off in global stock markets.
Overall Apple has cut the production volume of both old and new iPhones is expected to be cut to about 40 million to 43 million units for the January-March quarter. The earlier projection given by the company was 47 million to 48 million units, hinting at lower than expected demand. It remains to be seen whether Apple will be cutting down the prices of its flagship devices in the coming months in order to entice consumers.
Apple has not responded to requests for comment.