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Apple Inc announces a cut of 10 percent in its 2019 Q1 production plan for new iPhones

On Wednesday, January 9th, a report published by the Nikkei Asian Review showed that Apple Inc. has reduced planned production for its three new iPhone models by nearly 10 per cent for the first quarter of 2019, notably, this announcement has come just a week after the company’s quarterly sales were slashed.

As per analysts close to the matter, this rare forecast could possibly be caused due to reduced iPhone demand in China, (Arguably the world’s biggest smartphone market).

Several consumers, as well as analysts, have also claimed that the new iPhones are heavily overpriced.

As per reported by the Nikkei back in the previous month, citing sources close to the matter, Apple had made a request to its suppliers to manufacture fewer-than-planned units of its XR, XS, XS Max models.

Nikkei also reported that Apple Inc. made the request before announcing its forecast cut. Furtherly, Apple also said that the bleaker sales outlook was caused due to weak China demand, causing a broad sell-off in global stock markets.

As per a report published by Market research firm Canalys, it estimates that there was a 12 per cent drop in shipments in China for the previous year with another dip of 3 per cent for smartphone shipments to be expected in 2019.

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Notably, a request made by Reuters for comment was declined by Apple Inc. , also its iPhone supplier including Taiwanese assemblers Hon Hai Precision Industry Co Ltd (Foxconn) and Pegatron Corp. also declined to give any comment on the report when contacted by Reuters.

Notably, on Tuesday, January 8th, Tim Cook, Chief Executive of Apple Inc.  reiterated in an interview with CNBC that India is still a major focus for the iPhone manufacturer.