Published: Thu, January 10, 2019
Finance | By Loren Pratt

Apple to cut production of iPhone by 10 per cent

Apple to cut production of iPhone by 10 per cent

This comes after Apple slashed its quarterly sales forecast last week.

Apple has reportedly cut production plans for its 2018 iPhones again.

Apple is to cut production of its iPhone by about 10 per cent for the first three months of the year as its struggle to sell new handsets continues, it was reported yesterday. It is perhaps interesting-and legally problematic-that that letter never addressed ongoing problems.

A week after the shock created by the announcement of a downward adjustment of its revenue forecast for the last quarter of 2018, we learn that Apple has made a decision to reduce by 10% the production of the new iPhones.

The report stated that Apple asked its suppliers to reduce production for its flagship models last month - before it issued the earnings warning.

Overall planned production volume of both old and new iPhones is likely to be cut to a range of 40 million to 43 million units for January-March, from an earlier projection of 47 million to 48 million units, the Nikkei reported, citing one source familiar with the situation. That's a drop of at least 10 percent. Cupertino probably decided on that initial goal based on previous sales, seeing as it sold 52.21 million units within the same period a year ago. A small slump in iPhone sales aside, the company has seen good sales of iPads, Apple Watch, AirPods, and Macbooks - with the diversity of products ensuring protection against unexpected dips in revenue.

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