Apple will reduce the production of new iPhones by 10%

American Apple will reduce the production of new iPhone models by about 10% in the first quarter of this year, Nikkei Asian Review reported citing sources. 

“At the end of last month, Apple asked its suppliers to produce fewer new iPhones in the quarter from January to March than planned”. This is the second time in two months when the American company reduces production plans. At the same time, the latest revision concerns the new iPhone models – XS Max, XS and XR, sources said. 

Another source familiar with the situation reported that, according to the revised plan, the total production of both old and new iPhone models will decrease in the first quarter of 2019 to 40-43 million units from the previously expected 47-48 million, or more than 20% year-on-year. 

Last week, January 3, the company’s shares lost almost 10% of the cost after Apple worsened its revenue forecast due to problems in the implementation of smartphones. The head of the corporation Tim Cook then said in an open letter to investors about the slowdown in sales of the iPhone, as the main reason he pointed out the trade wars between the United States and China. 

In a letter to Cook, investors noted that Apple now expects revenue of $ 84 billion over the last quarter. This is lower than the forecast published two months ago, when the company predicted revenue from 89 to 93 billion dollars. 

Apple was founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. The company’s headquarters is located in Cupertino, California. Apple manufactures personal and tablet computers, audio players, phones, smart watches and software.

Tom Tompson

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