• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
TechEngage®

TechEngage®

Technology news and opinions

  • Tech News
  • Reviews
  • How-to
  • Roundups
  • Science
    • Energy
    • Environment
    • Health
    • Space
  • Apps
  • More
    • Opinion
    • Noteworthy
    • Culture
    • Blockchain
      • Cryptocurrency
    • Events
    • Deals
    • Startups
      • Startup Submissions
  • Videos
TechEngage » News » Phones

Apple Cuts Production Orders for New iPhones

Avatar Of Nouman S Ghumman Nouman S Ghumman Updated: December 29, 2018

apple cuts iphone production

According to reports, Apple has cut production orders for all three of its new iPhone models. These models included the iPhone XR, the iPhone XS, and the iPhone XS Max as stated by the Wall Street Journal. The decision became public on Monday. In recent weeks, Apple Inc made several orders to cut production for its new phones that the company launched in September.

Context

According to the Wall Street Journal report, the demand for the new iPhones was lower than expected. To further complicate, Apple has also decided to offer more models. It is, hence, difficult to deduce how much hardware components the company might need. However, the decision that Apple made to cut production for its new phones shocked investors. The company’s sales forecast for the Christmas quarter was appallingly below Wall Street expectations. After the forecast, suppliers issued warnings about weakness in sales for new iPhones.

Several suppliers all over the globe have shown their hand in response. Japan Display Inc is screen maker for Apple and has cut its full-year outlook. This company has given weaker smartphone demand as the reason for its change in policy. British chipmaker IQE Plc also announced that it expects a material reduction in its financial performance shortly. Other companies who have lowered their forecasts for the current fiscal year include software suppliers for Apple. The iPhone makers need this software for their FaceID technology. These suppliers include Lumentum Holdings Inc and AMS AG. Analog Devices Inc is also a supplier who have decided to go with the current wave.

Stock Market Shares Plummet

These developments have also left a mark on the stock market. On Monday, Apple had to witness its shares going down by 3.7% on Monday at $186.36. Its suppliers like Qorvo Inc, Lumentum and Skyworks Solutions Inc were also down by a range of 2.7-6%.

Amidst an increasingly problematic situation, the iPhone XR has been at the brunt of it. Special cuts of up to a third of its production units are distressing. Initially, Apple had asked its suppliers to produce around 70 million units between September and February. Last week, Apple informed its suppliers that the company had decided to lower its production plan for iPhone XR even further.

Sales of these new phones started in September for iPhone XS and iPhone XS Max while in October for iPhone XR. Memory chipmakers like Western Digital Corp and Micron Technology Inc are expected to be hit by these production cuts.

Based on lower iPhone builds, Micron is expected to have a 10 cent headwind in the last 2018 and first 2019 quarters. For Western Digital, the value will be 15 cent headwind. As a consequence, Micron’s shares were down by 3.4%, and those of Western Digital were down by 1.7%.

Stay tuned for more updates!

This post was orginally published on: November 21, 2018 and was updated on: December 29, 2018.

Related Tags: Apple iPhone iPhone XR iPhone XS iPhone XS Max

Related Stories

  • Samsung Galaxy Event Happening Today; How To Live Stream It!

    Samsung Galaxy event happening today; How to live stream it!

  • Everything You Need To Know About The Samsung Galaxy Tab S8

    Everything You Need to Know About the Samsung Galaxy Tab S8

  • Displaymate Gives The Samsung Galaxy S10 Display An A+ Grade

    DisplayMate gives the Samsung Galaxy S10 display an A+ grade

Avatar Of Nouman S Ghumman

Nouman S Ghumman

Vice President and Associate General Counsel

The writer holds an LLM degree in International Commercial Law from the City University of London. He is a Managing Partner at SG Advocates & Legal Consultants. He is also the Vice President and Associate General Counsel at TECHENGAGE. He can be reached at nouman@sgadvocates.com

Reader Interactions

Share Your Thoughts Cancel reply

Please read our comment policy before submitting your comment. Your email address will not be used or publish anywhere. You will only receive comment notifications if you opt to subscribe below.

Primary Sidebar

Become a contributor

We are accepting contributor applications. All applications will be decided in 3 days after applying. To learn more click here.
TechEngage-Apple-News
TechEngage-Google-News
Best Map Apps featured image

7 Best Map apps of 2023

Best smart home apps for efficient control

Recent Stories

  • Top Slack Alternatives in 2023
  • Apple strengthens account security with hardware keys support
  • 10 Best Messenger Apps in 2023
  • Essential Netflix tips and tricks 2023
  • How to lock Netflix profiles in 2023

Footer

Discover

  • About us
  • Newsroom
  • Staff
  • Advertise
  • Send us a tip
  • Startup Submission Questionnaire
  • Brand Kit
  • Contact us

Legal pages

  • Reviews Guarantee
  • Community Guidelines
  • Corrections Policy and Practice
  • Cookies Policy
  • Our Ethics
  • Disclaimer
  • GDPR Compliance
  • Privacy Policy
  • Terms and Conditions

Must reads

  • Best AirPods alternatives on Amazon
  • Best PC monitors for gaming on Amazon
  • Best family board games
  • Best Graphics Cards (GPUs) for gaming
  • Best video doorbells without subscription
  • Best handheld video game consoles
  • Best all-season tires for snow
  • Best mobile Wi-Fi hotspots
  • Best treadmills on Amazon
  • Best AM radios for long-distance reception

Download our apps

TechEngage-app-google-play-store

Copyright © 2023 · All Rights Reserved · TechEngage® is a Project of TechAbout LLC.
TechEngage® is a registered trademark in United Kingdom under Trademark Number UK00003417167 and is ISSN protected under the ISSN 2690-3776 and OCLC Number 1139335774.

Go to mobile version