Apple announces 10% cut in its mobile production

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Apple’s recent poor sale may be responsible for a lot of back and forth in the company, but what about a 10% cut down in the smartphone production

The last quarter of 2018 wasn’t really a perfect one for Apple, as they had a really poor sales for their latest flagships, the iPhone ‘XS’ ‘XS Mas’ and XR, but more specifically, the ‘XS’ has experienced the poorest sales. The reason for this was not particularly stated, although it was rumored to be as a result of poor marketing among other reasons. However, this is not the news in this particular content. The news is that the company has just announced to reduce their smartphone production rate by 10%.

According to one of our reliable source, the company is lowering its earnings guidance by a whopping $5 billion is probably a big enough indicator that the tech giant is feeling the effects of struggling smartphone sales and the US-China trade war. Another report makes it even clearer that the tech giant isn’t immune to market saturation, though: According to the publication, Cupertino has asked its suppliers to manufacture fewer iPhones than planned for January to March. Apple is reportedly cutting the overall production target of both old and new iPhones, including the XS Max, XS, and XR, by around 10 percent. Other than the new flagships, the new development is also expected to affect other iPhones that are still in production.

As a result of the cutdown, the company will be meeting up with a 40 million unit target instead of the initial 43 million. Those numbers are significantly lower than the 47 to 48 million units Apple originally wanted to manufacture for the first three months of 2019. Cupertino probably decided on that initial goal based on previous sales, seeing as it sold 52.21 million units within the same period last year. Previously the company was believed to have canceled a planned production increase for the iPhone XR. From all ends, Tim Cook, Apple’s CEO wouldn’t accept that any of the news is genuine, however, an epitome of true definitely can be perceived in all that has been going around as regard to the reduction in the production units.

 

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