Apple to cut production of iPhone by 10 per cent

Apple to cut production of iPhone by 10 per cent

On a related note, research firm Counterpoint says that although iPhone XR could be the company's best-selling handset till date, it has not yet matched up to the sales performance of the iPhone X that came out in 2017. These numbers are out when Apple has cut down expectations on the first quarter 2019 (October to December 2018) revenue.

Apple is having a hard time selling iPhones to the consumers and even with new features, the company is unable to sell them.

Apple is said to have asked its suppliers to produce less of its iPhone XS, XS Max and XR models than originally planned in the January to March quarter, according to reports by the Nikkei.

Shobhit Srivasta, a Counterpoint analyst, noted in his blog that the iPhone sales were impacted due to slower sales in the Asia Pacific region, Europe, and the U.S. This bit doesn't involve China and India, where Apple has also struggled to sell their phones. "We did not foresee the magnitude of the economic deceleration, particularly in greater China", Apple CEO Tim Cook said in a letter to investors when announcing the cut in revenue forecast.

More news: Workers at GM’s Canada plant hold work stoppage over closure

The decline in iPhone sales has forced the company to step up its services business, which pulled in record revenue of more than $10 billion in the last quarter.

Market research firm Canalys estimates shipments fell 12 percent in China previous year and expects smartphone shipments in 2019 to dip another three percent, to below 400 million for the first time since 2014. The report indicates that Apple is going to reduce production from 43 million units to 40 million iPhones. Next, Apple (NASDAQ:AAPL) pulled a rare move (at least for Apple) and lowered its own guidance down just two days in the new year. Apple did not immediately respond to a request for comment.

Among iPhone component suppliers in Asia, South Korea's LG Display Co Ltd was up 0.5 percent, while Japan Display Inc was flat. -China trade war, even though most of its products are not yet subject to additional US tariffs imposed on Chinese-made goods.

The cited source speculates that Apple is playing the safe card as it expects another decline in terms of iPhone sales in the coming months.