We already heard from different Apple vendors that they lowered their sales forecasts, suggesting that the latest iPhone models did…
We already heard from different Apple vendors that they lowered their sales forecasts, suggesting that the latest iPhone models did not perform as well as expected. The journal says today that Apple has reduced the order for both iPhone XS and iPhone XR.
Apple has apparently been struggling to accurately predict the demand for its three model model among the overall slowdown of the smartphone market and apparently weak Chinese demand. The changes in production schedules are frustrating providers, according to the Wall Street Journal.
It’s not clear how much this is a problem for Apple who not only sells a higher proportion of older iPhone models but also falls back to a flourishing service company for revenue and profit growth. Overall, the iPhone ASP (average selling price) will increase again in the quarter according to most predictions, which means Apple has to sell fewer iPhone devices to earn as much money.
Suppliers are much more exposed to this volatility. The Wall Street Journal report says an anonymous supplier “Growth fixes many sins.” When slowly, stones start to appear in the bottom of the ocean. “And” Doing business with Apple is very risky as it often turns into what it promised. “
The echos report claims that the iPhone XR orders were reduced by up to a third, and even suggest a further decrease over the past week. The decline of iPhone XS and iPhone XS Max orders seems to be less. Apple stocks dropped 5% earlier this month, as Apple vendors told investors to expect lower sales numbers than before.
We heard similar stories of production cuts this time last year with the iPhone X debut. However, the iPhone X was the most popular phone in the world. The magazine says Apple’s original iPhone X forecast was too optimistic and it will cut orders with 20 million units.
Apple no longer reports the unit’s sales as part of its quarterly financial reports, so we can not even wait for that call in January to hear details about iPhone performance during the vacation.
It is worth noting that Apple could cut orders in anticipation of lower demand in the short term, so sales weakness can only turn out on Apple’s books coming in the first quarter of the quarter of 2019. Apple’s holiday sales are almost always stellar. The company’s guidance lies in the bottom of the analyst’s expectations, indicating that it will make between 89 and 94 billion dollars in revenue for October-December 2018.