Apple may have overestimated demand for both the iPhone XR and iPhone XS/XS Max
After initially being predicted to substantially outsell its pricier iPhone XS and XS Max cousins, Apple’s slightly lower-end iPhone XR appears to be disappointing both the company and overly optimistic financial analysts.
Various supply chain sources have hinted at not one, but two massive production cuts lately, with orders canceled at key assemblers and parts makers struggling to keep their businesses afloat.
Believe it or not, things could be even worse than previously thought, according to trusted sources cited by the Wall Street Journal (via Reuters). These anonymous insiders claim Apple has had to reduce manufacturing operations for its entire 2018 iPhone family rather than partially offsetting weak XR demand with better-than-expected XS and XS Max sales, as other analysts and publications purported.
The iPhone XR remains “particularly problematic”, as Apple’s original production plan is reportedly down by “up to a third of the nearly 70 million units some suppliers had been asked to produce between September and February.” But at the same time, the iPhone XS and XS Max are seemingly not generating an enthusiasm that was already forecasted as relatively low.
Of course, we may never know for sure if these bleak new predictions will come true, as the Cupertino-based tech giant no longer intends to report quarterly shipment numbers for either iPhones or iPads.
Then again, it’s probably safe to assume now that decision came as Apple started receiving signals from retailers and customers of lower-than-usual demand for new iPhones over the holiday season. Either way, as long as profit margins don’t collapse, the company will be just fine.
Various supply chain sources have hinted at not one, but two massive production cuts lately, with orders canceled at key assemblers and parts makers struggling to keep their businesses afloat.
Believe it or not, things could be even worse than previously thought, according to trusted sources cited by the Wall Street Journal (via Reuters). These anonymous insiders claim Apple has had to reduce manufacturing operations for its entire 2018 iPhone family rather than partially offsetting weak XR demand with better-than-expected XS and XS Max sales, as other analysts and publications purported.
The iPhone XR remains “particularly problematic”, as Apple’s original production plan is reportedly down by “up to a third of the nearly 70 million units some suppliers had been asked to produce between September and February.” But at the same time, the iPhone XS and XS Max are seemingly not generating an enthusiasm that was already forecasted as relatively low.
Of course, we may never know for sure if these bleak new predictions will come true, as the Cupertino-based tech giant no longer intends to report quarterly shipment numbers for either iPhones or iPads.
Then again, it’s probably safe to assume now that decision came as Apple started receiving signals from retailers and customers of lower-than-usual demand for new iPhones over the holiday season. Either way, as long as profit margins don’t collapse, the company will be just fine.
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