Apple cuts production orders for three new models of iPhone: WSJ



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FILE PHOTO: On September 21, 2018, during a press visit to an Apple office in Shanghai, China, people take care of the new iPhone XS and XS Max. REUTERS / Aly Song / File Photo

(Reuters) – Apple iPhone Inc. manufacturer (AAPL.O) has cut back on its production orders in recent weeks for the three iPhone models launched in September, the Wall Street Journal reported on Monday, citing sources.

The weaker than expected demand for new iPhones and Apple's decision to offer more models have made it more difficult to predict the number of components and handsets the company needs, according to the newspaper.

Apple shocked investors a few weeks ago with lower-than-expected sales forecasts for the Christmas quarter, prompting some vendors to issue warnings of weak iPhone sales.

Forecasts have been particularly problematic for the iPhone XR, with Apple reducing its production plan by one-third of the nearly 70 million units that some suppliers had been asked to produce between September and February, said the newspaper.

Just last week, Apple informed several vendors that it had further reduced its production plan for the iPhone XR, the newspaper reported.

The company started selling its latest generation of phones, the iPhone XS and XS Max, in September and the XR model in October.

Apple has not responded to a request for comment outside of normal business hours.

Report of Kanishka Singh in Bengaluru; Edited by Gopakumar Warrier

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