Mikey Campbell
On the back of Apple's negative earnings forecast revision, a new report claims the company is bracing for a continued iPhone sales slowdown by scaling back production plans for the first calendar quarter of 2019 by 10 percent.
Citing sources close to the matter, Nikkei Asian Review on Wednesday said Apple last month asked partner suppliers to manufacture fewer iPhones than originally planned for the three-month period ending in March. According to the publication, the recent supplier update marks Apple's second request to draw down production in as many months.
The revision reportedly affects all new model iPhones, which include the iPhone XS, XS Max and XR. Old models are also impacted, with the company now targeting production of between 40 million to 43 million total iPhone units for the first quarter, down from earlier estimates of 47 million to 48 million units, the report said.
"The level of revision is different for each supplier and depends on the product mix they supply," a source said.
Today's reported estimates represent a 20 percent year-over-year contraction from the 52.2 million iPhones sold in the second fiscal quarter of 2018.
The report arrives less than a week after Apple adjusted down revenue guidance for the current holiday quarter. In a letter to investors, CEO Tim Cook blamed the shortfall on weaker than expected iPhone sales in China and other developing nations.
Cook in an interview today addressed concerns of a slowing iPhone market. In particular, when asked to comment on reports calling the iPhone XR a "flop," Cook said the mid-range handset has outsold its more expensive iPhone XS stablemates every day since its launch in October.
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38 Comments
Hmmm...maybe it's time to revisit the SE form factor?
Oh look more horseshit about a metric that is not indicative of Apple’s business any more. Let alone estimates from who!? Oh thats right, same dumbasses that dont know how to value Apple beyond a shitty consumer electronics company like Samsung Mobile, Palm, and Xiaomi amongst others out of business or will be within a decade. Also the same dumbasses that misreported the same tripe almost like clockwork for the last 8 years.
Hmmm... Maybe it's time Apple stoped being so greedy, money and profit orientated and got back to selling great products at an affordable / decent price.
Cook supposedly says "the iPhone XR has outsold the XS since it's launch in October", ummm yeah, could it be because the XR is a shit wad cheaper than the XS?!
Don't get me wrong, coz I am an Apple user / lover going on 20 years and I would dearly love to "upgrade" my ageing iPhone 6 to a lovely new current model iPhone but, not at these ludicrous prices.
Secondly, Apple has reverted back to it's John Scully days of saturating the market with multiple versions of the same product and Apple was 90 days away from being bankrupt. Something Steve Jobs eradicated upon his return to Apple in the 90's and we know how well the company did after that.
Sorry Mr Cook, you're probably a nice guy but, the advances of technology and idea's died with Steve Jobs and you do not have the ability to think outside the box, therefore, Apple seems to be going no where, whilst still bashing up the prices beyond belief, all the while releasing buggy software that makes the Apple Eco-sphere verging on being as bad as Microcrap (you know who I'm talking about).
Personally, Steve Jobs should have left Tim Cook in his previous post crunching numbers and doing supply orders. Steve should have made Craig Federighi CEO and front man for the Apple business and brand.
Rant mode = off ;-)
Come on Apple, lets get back to being inspiring and great, without the overly high price tags you THINK you can command. Before it's too late.
Nikkei usually “reports” cuts in the 50% range. And is wrong every time.