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By Malcolm Owen
On Monday, November 19, 2018, at 4:47 am Eastern Time (7:47 am ET)
According to a report, Apple's vendors would be grappling with an allegedly weaker demand for new iPhones, with Apple being accused of having difficulty determining market interest, although it is likely that it will be more difficult for Apple's customers to find new iPhones. he has demonstrated the opposite in his quarterly earnings forecast.
The iPhone XR range
Recent reports from Apple vendors indicate that the company has reduced its orders for iPhone components, reducing the amount required to meet current demand. Reduced orders led suppliers to warn of weaker-than-expected financial results, prompting some analysts and investors to determine that the latest iPhones were not as popular as they could have been.
According to the Wall Street newspaper, the choice to offer more models and a lower demand than expected for the 2018 refresh has "created disruptions" in the supply chain. Sources claim that Apple's stock has made it more difficult to forecast the order levels of components required by the company for the amount of iPhone XS, XS Max and XR units that it wants to produce.
Apple's decision to reduce production orders for all three models would be frustrating for both the suppliers' executives and its employees. Apple's other last week's notifications to suppliers that it would have further reduced its orders for iPhone XR would further worsen the situation of those involved.
According to the report, predictions regarding the iPhone XR would be particularly problematic, with Apple having negated its late October production plans by one-third of the 70 million originally ordered units between September and February. What is less clear, is how the "discounts" compare to the normal seasonal reductions in production because they do not seem to affect all of Apple's suppliers. .
Apple's decision to stop providing unit sales figures is also considered a problem, as it will make seasonal sales forecasting much harder to predict.
The production changes are certainly not a new phenomenon, especially in the case of the iPhone. Reports over the years have offered observations similar to those commissioned by Apple in the first place, before reducing them later.
"Doing business with Apple is very risky because it often goes against its promises," said a supplier manager.
The claim that Apple is struggling to predict demand may be suggested in the report, but its latest quarterly results suggest the opposite. According to the results, Apple expects an unusually wide income range of $ 89 to $ 93 billion, which is twice as wide as normal, which could indicate some uncertainty about unit sales over the period.
CEO Tim Cook also warned against a more flexible forecast than analysts expected, partly due to the relatively late introduction of the iPhone XR and exchange rate issues.
Cook has also already suggested that influencing the supply chain metrics to predict the demand for an iPhone is a folly. "I've never seen one as close to accuracy," said the executive in 2015 about estimates of the supply chain, with variations on the same theme since.
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