Their new iPhones are NOT selling at the rate they thought they would…..
Apple is telling its suppliers to cut production on new iPhones by 10 percent over the course of the next three months, reports Nikkei.
Apple made the request of its suppliers late last month, asking them to produce fewer iPhones for the January-March quarter.
The production revision applies to all of Apple’s new iPhone models, including the iPhone XS, XS Max, and XR. “The level of revision is different for each supplier and depends on the product mix they supply,” an unnamed source told Nikkei.
A second source said that overall production volume of both new and old iPhones will be reduced by approximately 40 to 43 million units for the January-March quarter, down from an earlier projection of 47 to 48 million units.
Due to weak iPhone sales in China, the effects of the U.S.-China trade war, cheap battery replacements, and other factors, Apple cut its Q1 2019 revenue guidance to $84 billion, down from the $89 to $93 billion guidance issued in November, and with the production cuts, those issues may continue further into the year….