Apple Introduced Its New iPhones Two Months Ago. It’s Already Slashing Production Orders, Says Report
Apple’s suppliers have for days been sounding warnings about iPhone demand. Now a new report has added fuel to the fire, potentially causing fresh stock market jitters.
On Monday morning, the Wall Street Journal reported that Apple has in recent weeks “slashed” production orders for its latest iPhone models, causing havoc along its supply chain.
Citing unnamed sources, the article said Apple last month lopped a third off the 70 million units it had ordered for its new iPhone XR model between September and February — and then it reduced its orders again.
Warnings from Apple supplier Lumentum were seen as causing a general stock market tumble a week ago, as investors see Apple as a bellwether for the crucial tech industry. Like Lumentum, Apple suppliers Qorvo and Japan Display have also cut their profit estimates, due to an unnamed large customer shrinking its orders — all three saw their stock value fall as a result.
iPhone assembler Foxconn has also cut its available overtime hours, according to the Journal.
Apple said earlier this month that it would stop disclosing its sales numbers for iPhones, iPads and Mac computers in its quarterly reports.
CFO Luca Maestri said this was because “the number of units sold in any 90-day period is not necessarily representative of the underlying strength of our business.” However, per the Journal, this decision is also making it even more difficult for Apple’s suppliers to gauge demand.
Fortune has asked Apple for comment on the report, and will add it in as and when it arrives.