Published: Sat, January 12, 2019
Medical | By Vicki Mclaughlin

Apple cuts Q1 iPhone production by 10%

Apple cuts Q1 iPhone production by 10%

Apple has reduced production for its three new iPhone models by about 10 percent for the January-March quarter, according to the Nikkei Asian Review. Cook blamed the shortfall on lower-than-expected demand from China over the Christmas and New Year holiday period. And to make matters worse, it seems that Apple could soon transfer much of its production to Pegatron, another famous assembler, in the hope of avoiding further bans on sales, in addition to the bans already received in China and Germany.

In 2018, Apple's stock went down 6.79%, thus, it again underperformed the S&P 500, which registered a 6.24% loss.

Apple decided past year to halt reporting on sales numbers of its iPhone and other hardware units, causing concern for investors who feared there may be a slowdown in demand for premium Apple products. On a related note, research firm Counterpoint says that although iPhone XR could be the company's best-selling handset till date, it has not yet matched up to the sales performance of the iPhone X that came out in 2017. The report indicates that Apple is going to reduce production from 43 million units to 40 million iPhones.

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Because Apple preannounced slower sales in Q4, the Nikkei is making out that Apple ordering 10 less iPhone for Q1 is some huge revelation.

"User familiarity has always worked for Apple, but that also mean that users keep their phones around longer", Mueller said. Analysts anticipate that Apple will post 12.13 earnings per share for the current fiscal year. "If it wants to reverse the trend, it needs a feature-rich, compelling iPhone cycle in 2019 that also needs to be priced right". But if even "affordable" iPhone models like the XR are retailing for £749 / $749 (AU$1,229), with flagship models pushing into four-figure sums, Apple may be testing the determination of its fan base a bit too hard. Speaking to CNBC Tuesday, Cook said the company was planning to announce "new services" later this year, without elaborating on what those might be.

Investors knocked about $75 billion from Apple's market value last Thursday.

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