Apple Cuts iPhone Production Another 10 Percent

Apple cuts 1Q production for new iPhones by 10 pct.: Report

Apple cuts 1Q production for new iPhones by 10 pct.: Report

The Nikkei Asian Review, which was among the first to publicize warnings about new iPhone sales last fall, reports that Apple has cut new iPhone production a further 10 percent for the entire first quarter of 2019.

The request was made before Apple cut its forecast last week, Nikkei said.

China is cited as the reason for weakening iPhone sales as that country's economy slows, which has been impacted by a trade war with the United States.

Apple is having a hard time selling iPhones to the consumers and even with new features, the company is unable to sell them.

Reuters reported last month that Apple will begin assembling its top-end iPhones in India through the local unit of Foxconn this year, citing a person familiar with the matter.

A different source told the publication the revised plan reduces iPhone production volume to about 40 million to 43 million units from 47 million to 48 million units for the first quarter.

Samsung surprised the market on Tuesday with an estimated 29 percent drop in quarterly profit, blaming weak chip demand in a rare commentary issued to "ease confusion" among investors already fretting about a global tech slowdown.

Apple's iPhone suppliers include Taiwanese assemblers Hon Hai Precision Industry (Foxconn) and Pegatron.

Shares of Foxconn, the world's biggest electronics contract manufacturer, were up 1.6 per cent while Pegatron was up 1.3 per cent. Apple sold 52.21 million iPhones in the same period previous year, according to Nikkei.

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