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Apple Slashes iPhone XR Output Amid Weak Demand
1 Nov
Summary
- Apple is reducing production orders for its latest iPhone models.
- Weaker-than-expected demand for new iPhones is the primary cause.
- The smartphone market is described as saturated, impacting growth.
Apple has significantly reduced production output for its latest iPhone models, according to reports. The company is slashing output orders for the iPhone XR, XS, and XS Max, all launched just in September.
This move comes as demand for the new iPhones has been weaker than expected. The daily publication notes that Apple finds it challenging to accurately forecast parts and handset needs due to fluctuating consumer interest.
Analysts observe that the overall smartphone market is saturated, impacting Apple's key growth drivers. This situation necessitates a stronger performance from its services division, which is intrinsically linked to hardware sales.
Concerns over iPhone sales have already impacted Apple's stock, with shares plummeting this month. This downturn is exacerbated by warnings from three suppliers indicating weakness in iPhone sales, with the iPhone XR being particularly problematic.
Reports indicate Apple has cut its production plan for the XR by up to a third of what was requested from suppliers for orders expected by February. As recently as last week, Apple reportedly informed several suppliers of further production reductions for the XR.
