Apple Inc (AAPL.O), which slashed its quarterly sales forecast last week, has reduced planned production for its three new iPhone models by about 10 percent for the January-March quarter, the Nikkei Asian Review reported on Wednesday.
Apple asked its suppliers last month to produce fewer models of the XS, XS Max and XR.
This decline in production would have been decided before the warning on the results of the last quarter whose turnover should be $ 84 billion instead of the 89 to 93 billion initially anticipated. This follows Apple's recent note to investors revealing that declining iPhone sales are causing it to miss its own earnings guidance for the first time in 16 years.
Apple is suffering from a maturing smartphone market and the impact of the U.S.
Another source added that Apple has revised its planned production of 43 million units, and is now targeting 40 million units for the January to Mark quarter, from an earlier projection of 47 million to 48 million units. "We believe the economic environment in China has been further impacted by rising trade tensions with the United States". Apple sold 52.21 million iPhones in the same period a year ago, according to Nikkei.
However, numbers could be different due to on-hand inventory and the number of these manufactured units that Apple is actually able to sell. While the iPhone has been a seemingly unstoppable growth engine for these companies for years, the supply chain is now experiencing the same sales drop that Apple is.