Apple reportedly slashes production orders for iPhone XR and XS

Ruben Fields
November 19, 2018

Apple has reduced the production of all three new iPhones that it launched back in September. The iPhone XS and iPhone XS Max, meanwhile, are even more expensive, starting at $999. Though Apple is thought to have cut iPhone XR production by 30% earlier this year, the report suggests iPhone XS and XS Max cuts are less steep.

According to the report, there is lower than expected demand for Apple's new iPhones, and "the company's decision to offer more models created turmoil along its supply chain and made it harder to predict the number of components and handsets it needs".

"Doing business with Apple is very risky as it often reverses what it has promised", they added. The component companies have both been supplying the Cupertino, California-based United States technology giant for years.

The company slashed production of all three of its new iPhone models - the XR, XS, and XS Max - according to a report from the Wall Street Journal.

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Now, though, the fear at manufacturing partners is that Apple is struggling to calculate exactly what demand will be.

The two premium models come with organic light-emitting diode (OLED) screens, while the XR uses a cheaper liquid crystal display (LCD) screen.

Apple shares (AAPL) were down 3.7 percent at $186.38 on Monday, while Lumentum, Skyworks Solutions (SWKS.O) and Qorvo (QRVO.O) were down between 2.7 to 6 percent. The move comes as global smartphone sales are slowing down, along with what appears to be weak demand from the Chinese market.

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