Apple Tells Suppliers to Cut iPhone XR and XS Production by 10% for Next Three Months

Discussion in ' News Discussion' started by MacRumors, Jan 8, 2019.

  1. MacRumors macrumors bot


    Apr 12, 2001

    Apple is telling its suppliers to cut production on new iPhones by 10 percent over the course of the next three months, reports Nikkei.

    Apple made the request of its suppliers late last month, asking them to produce fewer iPhones for the January-March quarter.


    This is the second time that Apple has recently cut down on iPhone production, and Nikkei says Apple made the decision prior to issuing its guidance downgrade last week.

    The production revision applies to all of Apple's new iPhone models, including the iPhone XS, XS Max, and XR. "The level of revision is different for each supplier and depends on the product mix they supply," an unnamed source told Nikkei.

    A second source said that overall production volume of both new and old iPhones will be reduced by approximately 40 to 43 million units for the January-March quarter, down from an earlier projection of 47 to 48 million units.

    Due to weak iPhone sales in China, the effects of the U.S.-China trade war, cheap battery replacements, and other factors, Apple cut its Q1 2019 revenue guidance to $84 billion, down from the $89 to $93 billion guidance issued in November, and with the production cuts, those issues may continue further into the year.

    Apple CEO Tim Cook just today said, however, that reports suggesting the iPhone XR is a flop or selling poorly are "bologna," and that the device has been the best selling iPhone every day since it launched.

    Article Link: Apple Tells Suppliers to Cut iPhone XR and XS Production by 10% for Next Three Months
  2. Zenithal macrumors 603

    Sep 10, 2009
    Dun dun dun!

    What's next on the "What can Tim do next?" show?
  3. AustinIllini macrumors demi-goddess


    Oct 20, 2011
    Austin, TX
    $2000 iPhone XIS
  4. dannyyankou macrumors 604


    Mar 2, 2012
    Scarsdale, NY
    Isn’t production usually cut as the year goes on, especially after Christmas?
  5. KPandian1 Suspended

    Oct 22, 2013
  6. AngerDanger, Jan 8, 2019
    Last edited: Jan 8, 2019

    AngerDanger macrumors 68040


    Dec 9, 2008
    Alright, Mr. Cook, here's the "bologna" you requested. Eat up.

  7. Baymowe335 macrumors 68040

    Oct 6, 2017
    Nikkei is about as unreliable as it gets, but it’s not like a production cut after Xmas wouldn’t make sense.

    Seems the iPhone did well everywhere except China.

    Apple needs an “emerging markets” phone.
  8. sinsin07, Jan 8, 2019
    Last edited: Jan 8, 2019

    sinsin07 macrumors 68040

    Mar 28, 2009
    These are the wrong cuts Tim.
  9. cycomiko macrumors 6502

    Oct 14, 2008

    Claiming iphone did everywhere but china, and actually iphone actually doing well everywhere but china..

    The USA dollar strengthened, which means setting a stupidly high USD price impacts non-US sales even more than the high price impacts US sales. Here, in 10 years the user price for the top end iphone went from $1350 to $2800 NZD.
  10. DTphonehome macrumors 68000

    Apr 4, 2003
    Must be because they’re selling so well, right Tim?
  11. 2GoldFish macrumors member


    Feb 1, 2012
    I believe the next "What can Tim do next" show is about Tim sitting on even more uncomfortable chair while being interviewed...
  12. CordovaLark macrumors member


    Mar 12, 2018
    Yes, that's right fake news. iPads don't bend it's the tables they are on that are bent in photos. Siri isn't bad, it's that all AI's are confused by multiple zip codes.
  13. givemeanapple macrumors Demi-God


    Oct 2, 2016
    But but Tim said the XR was doing just fine! I’m sure this post is a bologna.
  14. KPandian1 Suspended

    Oct 22, 2013
    While the XR version of the iPhone may be the best selling iPhone ever :rolleyes:, Apple planned for even more that they targeted production way above thees numbers.

    So, the cut in production report is believable; it is Apple that cuts its earnings estimate that lead to the decline. Yes the regular stock market also crashed, but Apple suffered more.

    Do you have proof that the Nikkei is an unreliable source - I am asking sincere-mode.

    I am an Apple fan, company and products; not so much the recent Mac range!
  15. Cosmosent macrumors 6502a


    Apr 20, 2016
    La Jolla, CA
    Anybody know where I can find a good Tim Cook Bobblehead Doll ???
  16. I7guy macrumors P6


    Nov 30, 2013
    Gotta be in it to win it
    Cutting production after the holiday shopping season is something the Apple has done every single year. It is neither surprising nor unexpected. Not sure why this appears to be some new strategy by Apple.
  17. Pepe4life macrumors member


    Nov 15, 2018
    Coming up: Tim Cook appears on CNN to tell us how these cuts are fake news
  18. nviz22 macrumors 601


    Jun 24, 2013
    I don't think Tim Cook is the right person for an Apple innovational rebound. If you want someone to produce strong financial results and please shareholders? Tim Cook is your guy. If you want someone who can pioneer an iPhone rebound, revitalize Siri, not demonstrate yesteryear Apple hubris, and be bold? Then Tim Cook isn't your guy.

    I am not going to say pre-Jobs or post-Jobs arguments here. I am just going to critique Cook's tenure:

    iOS 11 and its buggy fiasco, Siri being unshackled up a bit occurred way after the Google Assistant started its major strides, AirPower not even being out, iPad Pro and iPhone bending, lack of innovations w/ the iOS beyond being a touchscreen based environment, stagnant Mac products, etc.

    I think Apple needs to understand that its "differentiation" is not going to work on branding alone. When you can get better features, good enough software, and more value from your purchases at a fraction of the price? You're probably leaning towards the more affordable product.

    China is the most populous nation on the planet. Apple can still appease and entice their customers without resorting to Moto G pricing and products. To disrupt a mature market? It requires bold thinking and risk taking.

    You have a processor capable of powering a laptop, but you have the OS that has UI elements since iOS 7 and the functionality of generations old Android software. Why, why, why?
  19. bozzykid macrumors 68020

    Aug 11, 2009
    This isn't talking about scheduled production cuts. This report is saying an additional 10% cut more than was already planned.
  20. mistasopz macrumors 6502

    Apr 14, 2006
    Tim's strategy is to keep raising prices to offset losses. Brilliant idea.....
  21. AustinIllini macrumors demi-goddess


    Oct 20, 2011
    Austin, TX
    Usually, but XR is earlier in its yearly cycle than the XS.
  22. H.E. Pennypacker macrumors 6502

    H.E. Pennypacker

    Oct 23, 2017
    Thats salami. Come on guy!
  23. AngerDanger, Jan 8, 2019
    Last edited: Jan 8, 2019

    AngerDanger macrumors 68040


    Dec 9, 2008
    It’s… lebanon bologna… :oops:

    EDIT: Fine, I fixed it.
  24. FX120 macrumors 65816


    May 18, 2007
  25. fourthtunz macrumors 65816


    Jul 23, 2002
    I wonder.. did tim say it was bologna or baloney?

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