Arthur J. Villasanta – Fourth Estate Contributor
Cuppertino, CA, United States (4E) – Apple, Inc intends to slash the production of its iPhones by 10% between January and March in another sign that things are not well in the company.
It’s the second time in two months that Apple has reduced the production of its iPhones and comes only a week after it roiled global equity markets with its first earnings warning in 17 years.
Apple late in December asked suppliers to produce fewer of its new iPhones than planned in the first quarter of 2019. It said the planned production volume for new and old iPhones, including the XS Max, XS, and XR, will fall to between 40 million and 43 million units.
This compares to the previous production target ranging from 47 million to 48 million iPhones.
Apple continued to blame weakness in the Chinese economy and US President Donald Trump’s trade war for its decision to trim production.
One analyst said the news confirms “Apple’s darkest day in the iPhone era.” He further noted the magnitude of the top-line miss revealed a week ago with weaker China demand as the main culprit was jaw-dropping.
Apple’s main iPhone suppliers are Hon Hai Precision Industry Co Ltd, better known as Foxconn, and Pegatron Corporation.
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