It appears that demand for the three new iPhones that Apple launched recently may not be as high as the company would have expected. A reputable news outlet is reporting that the company has decided to cut production of all three new iPhones that it launched merely a couple of months ago. Demand for the iPhone XR has particularly been weak, it’s said.
The Wall Street Journal reported today that Apple has cut production orders for all three of the new iPhones that it launched in September this year. Apparently, there’s lower than expected demand for the company’s latest iPhones.
Initial forecasts had predicted slow sales for the iPhone XR as well. Apple has reportedly cut its production plan by up to a third. It was supposed to have nearly 70 million units made and has now asked suppliers to only produce a third of that amount between September 2018 and February 2019.
The scribe also mentions that Apple revised its production plan for the iPhone XR downwards yet again as early as last week. This may be less troubling for Apple’s balance sheet than it sounds. The company has gradually shifted from relying on the most units sold to making the most money it can off of a unit sold. That’s one of the reasons why it will no longer be disclosing unit sales for iPhones in its earnings results.
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