Apple Cuts iPhone Production Another 10 Percent

Mae Love
January 10, 2019

The request was made before Apple announced its forecast cut, the Nikkei said.

Reuters reported last month that Apple will begin assembling its top-end iPhones in India through the local unit of Foxconn this year, citing a person familiar with the matter.

A week after issuing a sales warning, Apple reportedly slashed its iPhone production for January to March by 10 percent. It is perhaps interesting-and legally problematic-that that letter never addressed ongoing problems. But if even "affordable" iPhone models like the XR are retailing for £749 / $749 (AU$1,229), with flagship models pushing into four-figure sums, Apple may be testing the determination of its fan base a bit too hard. Hot on the heals on this comes the news that Apple is cutting production of new iPhones for the current quarter by a significant amount.

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A different source told the publication the revised plan reduces iPhone production volume to about 40 million to 43 million units from 47 million to 48 million units for the first quarter. That's a drop of at least 10 percent.

Luckily for Apple, the Chinese court's ruling does not apply to iPhone models running iOS 12 nor to Apple's latest iPhone XS/XR/XS Max lineup, allowing it to keep those models on a market which, apparently, doesn't really want them in the first place according to Tim Cook. But given the revenue adjustment and slowdown in iPhone sales, that number is surely going to take a hit.

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