Apple cutting iPhone production by 10% this quarter, report claims

For the second time in two months, Apple is cutting iPhone production, according to a new report from Nikkei. Citing sources with knowledge of the request, the outlet says Apple has asked its suppliers to produce 10% fewer handsets than originally planned for the January-March quarter.

The latest revision to future production applies to all new iPhone models — the XS Max, XS and XR, sources familiar with the matter said. “The level of revision is different for each supplier and depends on the product mix they supply,” one of the sources said.

Another source familiar with the situation said that under the revised plan, overall planned production volume of both old and new iPhones will be reduced to about 40 million to 43 million units for the January-March quarter from an earlier projection of 47 million to 48 million units.

If true, this would represent a year-over-year decline in iPhone sales of more than 20%—Apple sold 52.2 million iPhones in the same quarter a year ago. It would also add to the growing concerns from investors, as the company earlier this month had to make its first earnings adjustment in 16 years.

Apple obviously saw this coming—last November it announced it would no longer be reporting iPhone sales numbers—but it seems they weren’t fully aware of the extent of the drop-off. We should know more at the end of the month, when it divulges its holiday quarter earnings on January 29.

Source: Nikkei