Apple Cuts iPhone Orders by 20 Percent

According to a report by Nikkei, Apple has requested that suppliers reduce the production for their three new iPhone components by around 20 percent. The new iPhones are set to release in the fall.

"Apple is quite conservative in terms of placing new orders for upcoming iPhones this year," one of the four sources, who is in the supply chain, told the Nikkei Asian Review. "For the three new models specifically, the total planned capacity could be up to 20% fewer than last year's orders."

Last year, the company had planned to produce up to 100 million units of the iPhone 8, iPhone 8 Plus, and iPhone X, but told suppliers this year to prepare for 80 million units. Two of the new models will feature expensive organic LED screens, like the iPhone X, and one of the models will have a cost effective LCD screen, similar to the iPhone 8. All three models will have the TrueDepth 3D sensing camera system that is used for Face ID, says industry sources.

The news of reduced iPhone orders caused Apple shares to fall by 1.7 in early morning trading. It also had effects on its suppliers, causing Austrian supplier AMS AG to drop by 6.1 percent, U.S. based Cirrus Logic Inc. dropped by as much as 4.2 percent, Skyworks Solutions Inc fell 3 percent and Qorvo Inc. fell 0.6 percent at the time of this article.

Apple Inc. (NASDAQ: AAPL) sold 52.2 million iPhones during the first three months of 2018, seeing an increase of 3% from the same period last year, but missing the expected goal of 53 million.

Leave a Comment