More depressing news for Apple investors reeling from the recent downward revenue forecast for the last quarter of 2018: Apple has reportedly cut its iPhone production for the current quarter by 10%.
The firm had already reportedly “slashed” production orders for its latest iPhone models the previous month.
Those models do not come cheap, starting at $749 for the cheapest iPhone XR, which is 8% more than the cheapest version (the iPhone 8) released the previous year. When revising its revenue forecast last week, Apple did not admit that high prices were a factor in its slowing sales, instead opting to blame the slowdown in the Chinese economy and low upgrade figures.
The fact is that Apple’s prices are incredibly high in a market where cheap Chinese phones from the likes of Xiaomi and Huawei are more than capable for most people’s needs. However, the smartphone market is also in a broader contraction.
Phone-makers Samsung and LG this week shocked analysts with profit warnings relating to falling sales — the former company isn’t just the world’s biggest handset manufacturer, but also a major component supplier to companies including Apple. New data from the state-run China Academy of Information and Communications Technology also showed Chinese smartphone shipments fell by a whopping 15.5% in 2018.
Apple had not responded to a request for comment on the Nikkei report at the time of writing.