Apple will reportedly manufacture 10% fewer iPhones this quarter

  • Apple will reportedly manufacture 10% fewer iPhones this quarter

Apple will reportedly manufacture 10% fewer iPhones this quarter

According to a report by Nikkei, the amended plan is due to slowing demand for smartphones - especially in China, whose weak economy was blamed by Apple for not meeting previous sales targets.

Sources say that Apple contacted suppliers last month, telling them to produce fewer iPhones for the current quarter. But if even "affordable" iPhone models like the XR are retailing for £749 / $749 (AU$1,229), with flagship models pushing into four-figure sums, Apple may be testing the determination of its fan base a bit too hard. This new cut falls outside of the time frame for last week's blockbuster warning to investors from Apple CEO Tim Cook, which covered the fourth quarter of 2018.

Market research firm Canalys estimates shipments fell 12 percent in China past year and expects smartphone shipments in 2019 to dip another 3 percent, to below 400 million for the first time since 2014.

The original plan for 48 million sold units between January and March, later reduced to 43 million, is now taking another hit and is cut with an additional 10% to 40 million.

Apple's iPhone suppliers include Taiwanese assemblers Hon Hai Precision Industry (Foxconn) and Pegatron.

Shares of Foxconn, the world's biggest electronics contract manufacturer, closed up 1.6 percent, while Pegatron closed up 1.3 percent.

Among iPhone component suppliers in Asia, South Korea's LG Display Co Ltd was up 0.5 percent, while Japan Display Inc was flat. It is going to be hard to track the precise numbers as Apple announced late a year ago that it would no longer be sharing details of iPhone shipment figures.

Apple did not immediately respond to a Reuters request for comment.