Apple Taking 'Cautious Approach' to iPhone Assembly This Year, Lowering Component Orders by 20%

Discussion in ' News Discussion' started by MacRumors, Jun 8, 2018.

  1. MacRumors macrumors bot


    Apr 12, 2001

    Apple recently asked its iPhone suppliers to build "around 20 percent fewer" components for the line of iPhones debuting in the second half of 2018, according to four sources speaking to Nikkei. The move is Apple's attempt to take a "cautious approach" to iPhone shipments in 2018 compared to 2017 orders.


    Specifically, last year Apple was said to have placed orders for the production of as many as 100 million iPhone 8, 8 Plus, and X units. That number is now down to 80 million in 2018, according to the sources. In the wake of Nikkei's report, Apple shares have fallen in premarket trading this morning.
    Nikkei's report corroborates recent claims made by TF International Securities analyst Ming-Chi Kuo, stating that all three new iPhones will ship in September 2018 (two OLED models measuring in at 5.8 and 6.5 inches and a 6.1-inch lower-cost LCD model), despite some reports claiming that the LCD model could launch slightly later.
    The sources said that Apple informed its supply chain to "prepare earlier" for this year's OLED models in a bid to ensure that the smartphones can launch in September, unlike the iPhone X's delay to November in 2017. Now, components for these smartphones will arrive at assemblers like Foxconn and Pegatron for final assembly in July, while the same will occur for the LCD model in August.

    Apple is believed to launch three new iPhones in 2018: a 6.5-inch "iPhone X Plus", a second generation iPhone X, and a 6.1-inch LCD iPhone, all coming with a full-screen design and Face ID. According to Kuo, the price of the devices will start at $600-$700 for the LCD model, $800-$900 for the new iPhone X, and $900-$1,000 for the iPhone X Plus.

    Article Link: Apple Taking 'Cautious Approach' to iPhone Assembly This Year, Lowering Component Orders by 20%
  2. Phogro macrumors regular


    Aug 13, 2015
    Boston, MA
    Wonder how apple will handle those on the Apple Upgrade Program who bought an iPhone X in November and wish to upgrade to an iPhone X Plus in September. Will they do an even swap or will they make you pay the remaining 2 payments?
  3. az431 macrumors 6502a


    Sep 13, 2008
    Portland, OR
    Here we go again with the absurd rumors that turn out to not be true most of the time.
    --- Post Merged, Jun 8, 2018 ---
    The upgrade program requires 12 payments before qualifying for an upgrade.
  4. EdT macrumors 65816


    Mar 11, 2007
    Omaha, NE
    I believe that Apple is between a rock and a hard place regarding upcoming iPhone sales this fall, but it is a situation of their own making. For the last several years phones have had serious software and hardware issues but new features were what Apple decided to concentrate on and not fixing problems with current code or adequately testing what limitations new IOS’s had with 2-5 year old iPhones.

    Because of very bad publicity they made a decision to concentrate on fixing problems and trying to produce a stable and reliable OS that works at least ok even on older phones.

    But this means new features have to be delayed for this years models. Not that there won’t be ANY new features, there will, but features will probably be more evolutionary rather than revolutionary.

    It was a conscious decision Apple made for the past few iPhones and IOS updates to highlight new features and just band-aid known problems, but at some point they were going to have to spend the time and resources to actually fix things. Evidently that time is this year. Hopefully. But it will negatively affect phone sales this fall.
  5. Gashole macrumors newbie

    Sep 9, 2014
    I'm in no rush for a new iPhone. My 7 has been working perfectly well and I don't want a phone that's ALL glass. With the $29 battery replacement I expect my phone to keep working fine for another 2 years. After the 7, there hasn't been any new features that I "must have". I suspect we're nearing, or have already hit, smartphone peak.
  6. friednoodles macrumors 6502a

    Feb 4, 2014
    Calling it now: analysts will again put too much emphasis on some supply chain numbers that don’t directly correlate to how many iPhones will be sold, and Apple will have another record quarter due to an iPhone XS Plus. As usual there will be relentless negativity.
  7. rillrill macrumors 6502a


    Jul 27, 2011
    New York
    So either they are not lowering the price of the phones, like rumored, or they want to create a demand. Not good, Apple.
  8. vertical smile macrumors 68030

    vertical smile

    Sep 23, 2014

    This reminds me of MacOS 10.5 Leopard.

    Leopard was a very new feature heavy, but very unstable, RAM hungry, and had a huge footprint. Apple acknowledge the problems with Leopard, and concentrated on stability and user experience, rather than a bunch of new features for Snow Leopard.

    I think it was a smart choice, as 10.6 is probably the most stable version of OSX.
  9. alex00100 macrumors 6502

    Mar 17, 2011
    Moscow, Russia
    You talking about removal of headphone jack?
  10. Sir Ruben macrumors 65816

    Sir Ruben

    Jul 3, 2010
    Yay the lack of availability hype begins again. Love this time of year :)

    Apple hit the absolute limits of what they could charge for a phone with the X last year. The paid the price for that to some extent. They may also find that people who DID buy the X will be far less inclined to now upgrade every year. I used to but I can't justify that kind of price for something I don't need EVERY year.

    The X should tide me over for a while despite the incoming incremental upgrades of marginally better camera features, faster Face ID, and pseudo 'upgrades' that amount to functionality they chose not to offer on older devices.
  11. cmaier macrumors G4

    Jul 25, 2007
    Every year the stock manipulators spread false rumors of production cuts and production difficulties. Every single year. And every year everyone falls for it.
  12. SPUY767 macrumors 68020


    Jun 22, 2003
    Looks like we are getting an early start on shorting the stock this quarter. Guess it wasn't as effective as they'd hoped last quarter.
  13. DotCom2 macrumors 68040

    Feb 22, 2009
  14. slimtastic Suspended


    May 17, 2018
    Your Mother's Bedroom
    Having the iPhone X, there is no need to upgrade to this year's iPhone X2. 2019 iPhone X3 will be the one to upgrade to. This year's will be more of an S upgrade.
  15. macduke macrumors G3


    Jun 27, 2007
    Central U.S.
    I just hope that if they launch the new iPhone X in September that they allow iPhone Upgrade Program members to upgrade "early" without penalizing us because they were behind last year.
  16. DotCom2 macrumors 68040

    Feb 22, 2009
    Then when/if it REALLY happens, no one is going to believe it.o_O
  17. Rocketman macrumors 603


    This might be making room for a surprise 4th model possibly emphasising VR/AR with a pre-Christmas release. Same shell, different guts.
  18. Nanotyrns macrumors 65816


    Sep 16, 2012
    NNooooooooooooo. Ugh, I was able to walk in on launch day and get a phone. That was awesome. For the love of the most holy beveled edge, wait until December to lower orders.
  19. AJ5790 macrumors 6502

    Jun 1, 2016
    Obviously some publications learned nothing from the past 2 iPhone X quarters. Let me say it slowly. You. Can’t. Know. About. Sales. By. Looking. At. The. Supply. Chain. Yet, here we are again, dutifully reporting the “doom and gloom” from a company proven to be wrong about the iPhone X. At what point does the media become complicit by giving the fire oxygen? This has gotten so completely ridiculous.
  20. nwcs macrumors 68000


    Sep 21, 2009
    I think this is a sign more of market saturation and maturity than anything else. The smartphone industry will soon be ripe for a disruption at some point that changes things. I doubt it will be AR but I have no idea what it will be. It’s just incremental changes from here on out. In fact, my next iPhone might be my last phone for several years.
  21. amcomis macrumors newbie

    Sep 19, 2012
    Weird apple cant get people to pay $1149+tax+applecare. huh
  22. shareef777 macrumors 68020


    Jul 26, 2005
    Chicago, IL
    Market manipulation at its best. Sadly, I'm too much of a chicken **** to capitalize on that lol.
  23. recoil80 macrumors 68020

    Jul 16, 2014
    I don't think you'll be penalised but as far as I know you have to make 12 payments so if you want to have the new iPhone in September you may need to pay the equivalent of 2 months to reach the 12th payment and be eligible for an upgrade.

    I bough my 8+ on October so I'll be able to switch to the new iPhone at the beginning of the month, just a couple of weeks after the initial launch.
    Not sure I'll go for a plus model this time, the 6.1 sounds promising and although I'm not fond of X's aspect ratio I may chose that model to save money and have a more compact phone.
  24. itsmilo macrumors 68020


    Sep 15, 2016
    I love how 700$ is considered the low budget iPhone when the high end iPhone used to cost like 640€ back in the day
  25. nwcs macrumors 68000


    Sep 21, 2009
    Did you adjust for inflation? Also the new phones now do a lot more than the high end phones from 4+ years ago.

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