Report: Apple Cuts iPhone Production Another 10 Percent

Posted on January 9, 2019 by Paul Thurrott in Apple, iOS with 18 Comments

A new report claims that Apple has cut production of new iPhones by another 10 percent in the wake of its blockbuster sales warning.

The Nikkei Asian Review, which was among the first to publicize warnings about new iPhone sales last fall, reports that Apple has cut new iPhone production a further 10 percent for the entire first quarter of 2019. This new cut falls outside of the time frame for last week’s blockbuster warning to investors from Apple CEO Tim Cook, which covered the fourth quarter of 2018. It is perhaps interesting—and legally problematic—that that letter never addressed ongoing problems.

Citing sources at Apple’s suppliers, Nikkei says that the consumer electronics giant asked those supplies late last month for further cuts in the production of key iPhone components. This, the publication says, is the second time it’s explicitly lowered the production of its new, flagship iPhones. And it applies to all of them, the iPhone XS, XS Max, and XR.

“The level of revision is different for each supplier and depends on the product mix they supply,” a source told Nikkei of the product cuts.

Apple originally planned to ship up to 48 million old and new iPhones in the first quarter of 2019, but with the cuts, it will now ship 40 to 43 million units. That’s a drop of at least 10 percent. But it’s also a drop of over 20 percent when you look at the 52.21 million iPhones that Apple sold in the year-ago quarter. And that, of course, is why Apple will no longer provide unit sales numbers.

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