Apple is not having a very good end of 2018, since after losing the title of most valuable company in the USA in favour of Microsoft, today DigiTimes has stated that they have been forced to slow down again the production of their latest iPhone, in view of the bad sales.
Sales expectations have plummeted in recent weeks and that is why Cupertino’s company is being forced to reduce production orders, slowing down the assembly of new iPhones to be marketed in its Store.
Earlier reports had mentioned that Apple had reduced orders for its new iPhone XS and XR, but today DigiTimes has published a new report stating that they have had to reduce by second time this production. In particular we read the following:
Apple has allegedly imposed a second wave of production order reductions in the wake of weaker than expected sales for its new iPhones [and] many of its supply chain partners are beginning to feel the consequences in November. iPhone camera lens supplier Largan Precision, for example, has estimated that its November revenue will drop from its October revenue. Another of its suppliers has been forced to lay off 110 workers because of Apple’s decision.
There are different discrepancies among analysts, as while DigiTimes claims that we are looking at an s second round of reductions, others believe that there was only a single reduction earlier this month. What is clear is that the vast majority of analysts agree that sales of these iPhones are not doing well at all.
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Clearly Apple must reflect on their marketing strategy and the price they have put on their new iPhone, which is one of the most controversial points. Selling the same number of units but charging much more for this price increase may not be a great strategy as it is being reflected in Apple’s price per share.