Apple reportedly reduced production orders for the iPhone XS and the iPhone XR

We have already heard from various Apple suppliers that they are reducing their sales forecasts, implying that the latest iPhone models are not performing as well as expected. The Journal announced today that Apple has reduced orders for iPhone XS and iPhone XR.

Apple has apparently struggled to accurately forecast the demand for its three models amid a general slowdown in the smartphone market and a seemingly weak Chinese demand. Changes in production schedules frustrate suppliers, according to the Wall Street Journal.

It is not clear that this is a problem for Apple, which not only sells a larger proportion of older iPhone models, but also uses a thriving service business for revenue growth and benefits. According to most forecasts, the price of the iPhone for iPhone (average selling price) will increase again this quarter, which means that Apple must sell less iPhone to earn the same amount.

Suppliers are much more exposed to this volatility. In the Wall Street Journal report, an anonymous vendor said, "Growth corrects many sins. When it slows down, rocks begin to appear at the bottom of the ocean. "And" Doing business with Apple is very risky because it often cancels the promises. "

According to the report, orders for the iPhone XR would have been cut by a third, and even hint at a further cut last week. The reduction in orders for the iPhone XS and the iPhone XS Max seems to be less. Apple's shares fell 5% earlier this month, as Apple's suppliers told investors to expect lower-than-expected sales figures.

We have heard similar stories of production cuts at the same time last year with the debut of the iPhone X However, the iPhone X has become the most popular phone in the world. According to the Journal, Apple's initial forecasts for the iPhone X were too optimistic and the order reduction of 20 million units.

Apple no longer reports device unit sales in its quarterly financial publications. So we can not even wait for this call in January to hear details about the performance of the iPhone during the holidays.

It is interesting to note that Apple could reduce its orders in anticipation of a drop in demand in the short term. As a result, weak sales could only be seen in Apple's books in the first quarter of 2019. Apple's sales are almost always exceptional. The company's forecasts are at the bottom end of analysts' expectations, indicating a turnover of between 89 and 94 billion dollars for October to December 2018.