Apple cuts production orders on new iPhone models - report
Apple Inc.
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13:05 25/04/24
Apple has reportedly slashed production orders for all three of its new iPhones following lower-than-expected demand for the devices.
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The most valuable company in the world has had a hard time predicting the number of components and handsets it will need of late following its decision to offer more models, according to the Wall Street Journal.
Apple caught investors off guard earlier in November, with a softer-than-anticipated sales forecast for the all-important holiday period, leading suppliers to issue warnings which, in turn, prompted fears of further weakness in iPhone sales.
Apple was said to have slashed production of its iPhone XR models by as much as a third of the almost 70m units suppliers had been contracted for between September and February.
Just last week, Apple warned several suppliers that it would be lowering its production plan for the iPhone XR yet again, less than two months after the iPhone XS and XS Max hit the shelves in September, with the XR following in October.
Quarterly results at the start of November showed 46.9m iPhones were sold in the fiscal fourth quarter, about flat with the 46.7m sold last year but below the 47.6m sales that analysts expected. Global iPhone sales for the entire year were up 1% year-on-year at just under 218m but increased selling prices helped Apple deliver record annual revenues.
Furthermore Apple worried analysts when management said they would stop reporting unit sales for iPhones, iPads, and Macs beginning in its 2019 fiscal year.
As of 1200 GMT, Apple shares had slipped 1.90% in pre-market trading to $193.53 each.