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Earlier this week, a little sketchy report surfaced claiming that Apple told its manufacturing partners to reduce iPhone XR production due to lower than anticipated demand. Even more alarming, the report claimed that overall production could drop by as much as 25%. Naturally, it's a lot more important than the iPhone has hit its peak, even though the report is more likely to be raised.
For starters, the claim that iPhone XR is a great seller. Further, it seems odd that Apple would drastically cut production ahead of the busy holiday shopping season. So just what, exactly, is going on?
Well as it turns out, Apple may have ordered a rollback in production, but not for reasons pertaining to demand. According to a research analyst Jun Zhang (originally brought to light by Philip Elmer-DeWitt's Apple 3.0There may have been some problems involving the iPhone XR's printed circuit board.
Zhang's note reads in part:
We also believe that pull-ins are slowing down this week. We believe some Printed Circuit Board (PCB) supplier shipments of HDI boards were quickly dropped this week. This may be attributable to quality issues from Skyworks PAs. We believe this potential round of iPhone XR production cuts by Apple may be attributable to the recently discovered PA quality issues.
In short, the sky is not falling and iPhone is not about drastically. Far from it, it's going to be a huge increase in iPhone sales. Of course, with Apple no longer keen on releasing quarterly iPhone sales, we really will not be able to know how.
IPhone, iPad, iPod, iPhone, iPad, iPod, iPhone, iPod, iPhone As we saw here, a report about a drop in iPhone production can not be misplaced in a completely misleading manner and not accurately portrayed the vibrancy of Apple's business. Similarly, with iPhones no longer launching these days (with last year's iPhone X launching in November and the iPhone XR launching in late October of this year), a random 12 week snapshot of iPhone sales was years ago.
Image Source: SquareTrade
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