Bad news for Apple. The Cupertino company has decided to cut orders for the production of the three new iPhone models: iPhone XR, iPhone XS and iPhone XS Max.
The news worries both the market and the main suppliers of the giant led by Tim Cook and these fears also have repercussions on the Stock Exchange: a few minutes after the opening of the Nasdaq, the Apple stock in fact, it yields 3,3% to 187,6 dollars weighing down the entire price list (-1,7%).
In recent days, as reported by the Wall Street Journal, Qorvo, Lumentum and Japan Display, Suppliers to Cupertino, have cut profit estimates, citing the reduction of previously scheduled orders with a large client as the cause.
Although no names have been named, who this "customer" is seems to be certain, also taking into consideration the fact that the production of iPhones accounts for between a third and a half of their revenue for these companies.
Even more radical Foxconn, the largest iPhone assembler, which also announced its intention to cut overtime hours, usually necessary during the peak of production which is reached in the pre-Christmas months.
But what prompted Apple to cut orders for iPhone production? A question below expectations for new iPhones, also compromised by the fact that the company has chosen to launch three different models at the same time. Complicating the situation, according to the experts, were also influenced by the high cost of the devices – the price of the iPhone XS and XS Max well exceeds a thousand dollars – and the decision to keep even the older models in stores, with a more affordable price.
Recall that a few weeks ago, Apple surprised (negatively) the markets, making notes stime on sales lower than expected for the Christmas period, forecasts that have forced the company to reduce orders for iPhone XR by a third of the nearly 70 million units requested from manufacturers for the September-February semester. The Wall Street Journal he also explains that last week the company led by Tim Cook had to lower its production plan again.
Finally, it should be emphasized that Apple is not the only company in the sector to experience a moment of difficulty. Sales are down for everyone: In the third quarter of 2018, 355,2 million smartphones were put on the market compared to 377,8 million units sold in the same period of 2017. This is the fourth consecutive quarter in which a contraction.
