Cupertino giant, Apple might reduce the production orders of its latest iPhones in the first quarter of 2019. Rosenblatt Securities analyst Jun Zhang predicted this.
Apple has reportedly started to cut the new iPhone orders by at least two times. The previous cuts were attributed to the lower-than-expected demand for the phone, but it looks like the upcoming reduction might be a result of dealing with the weakness in demand from China due to their fallout which happened due to Huawei CFO Meng Wanzhou being arrested.
A report recently stated that the Chinese companies have been showing their support to Huawei by offering to subsidise the Huawei smartphone purchases of their employees, instead of buying iPhones. The analyst claimed that as low as 2.5 million units might lower the iPhone XR production orders. In addition to this, the iPhone XS and iPhone XS Max will experience cuts of about 1 million and 500,000 units respectively.
Huawei’s CFO Wanzhou was held in Canada earlier this month because of violation of export controls and US sanctions. He is facing extradition in the United States for the same. Wanzhou was granted bail on December 12.
Before this, Apple shocked its investors by revealing its expectations of a lower-than-expected sales for the Christmas quarter. This was followed by the Wall Street Journal reporting that Apple, in late October, will slash up to a third of the 70 million units which it had initially asked the suppliers to assemble for their iPhone XR.
The company further reduced the number in November. Apple’s new iPhones – iPhone XS, iPhone XS Max, and iPhone XR — were introduced in September this year and their prices started from $749. The iPhone XS and iPhone XS Max models went on sale in the same month, but the iPhone XR reached the stores in October only.
Apple was again in the news since it pulled some older iPhone models from the German stores since it had a patent battle going on with Qualcomm. According to Apple, the iPhone 7 and iPhone 8 models will not be available at Apple’s 15 retail stores in the country. But the other stores will have all the iPhone models.