Apple cuts quarterly production plan for new iPhones by 10 percent: Nikkei
FILE PHOTO: People watch iPhones at the World Trade Center Apple Store during a Black Friday sales event in Manhattan, New York City, USA, November 23, 201[ads1]8. REUTERS / Andrew Kelly / File Photo
(Reuters) – Apple Inc ( AAPL.O ) cuts planned output for its three new iPhone models by about 10 percent for the March quarter, Nikkei Asian Review reported Wednesday, one week after the company slashed quarterly sales forecasts.
The rare step revealed the weakening demand in China for Apple's iPhones among a slowing economy, which has also become the buffet of a bruise trade war with the United States.
Many analysts and consumers have said that the new iPhones are overpriced.
Apple asked its vendors late last month to produce fewer than scheduled models of the XS, XS Max and XR, said Nikkei, and quoted sources of knowledge about the request. s.nikkei.com/2TEJ02G
The request was made before Apple cut its forecast last week, Nikkei said. The surprise notification triggered a broad sale in global stock markets.
Total planned production volume for both old and new iPhones is expected to be reduced to around 40 million to 43 million units in the January-March quarter, from a previous projection of 47 million to 48 million units, Nikkei reported referring to a source known with the situation.
Apple did not immediately respond to a request from Reuters for comment.
Reporting by Chris Gallagher in TOKYO and Sayantani Ghosh in Singapore; Editing by Christopher Cushing
