Apple cuts production orders for all three new iPhone models

  • Apple cuts production orders for all three new iPhone models

Apple cuts production orders for all three new iPhone models

Weaker demand in China is also reportedly another reason for the cuts.

The iPhone maker's stock was down almost 20% from a record high in October as a disappointing holiday-quarter sales forecast and weak outlook from several of its suppliers, took the shine off a stock that has powered a rally in the decade-long bull-run for stocks.

"In addition to weakness in demand for Apple's products in China and other emerging markets it also looks like the balance of price and features in the iPhone XR may not have been well-received by users outside of the USA", wrote Goldman's Rod Hall. The current batch of phones were the most expensive yet, but even these margins could not keep Apple's cash cow alive and some observers thought that the price increases were too much and even Apple buyers were not that dumb.

Lower-than-expected demand for Apple Inc.'s new iPhones and the company's decision to offer more models have created turmoil along its supply chain and made it harder to predict the number of components and handsets it needs, people familiar with the situation say.

Trading volumes were thin in a holiday-shortened week ahead of Thanksgiving on Thursday and a shorter session on Friday which brings a slight volatility to markets, traders said.

Apple stock was down 3.8% to $178.81 early on Tuesday.

Over the weekend, Asia-Pacific leaders failed to agree on a communique for the first time ever at a meeting in Papua New Guinea with U.S.

Boeing Co and Caterpillar Inc, seen as trade sensitive stocks, fell 4.8 per cent and 2.5 per cent, respectively. Declining issues outnumbered advancers for a 1.79-to-1 ratio on the Nasdaq. Only the headline has been changed.