Gadget giant Apple has apparently cut its orders with suppliers in response to lower-than-expected demand for its latest iPhones.

Scott Bicheno

November 19, 2018

1 Min Read
Apple iPhone sales are reportedly flagging

Gadget giant Apple has apparently cut its orders with suppliers in response to lower-than-expected demand for its latest iPhones.

The scoop comes from the WSJ, which spoke to the usual, shady people close to the matter in the Apple supply chain. They’re apparently bent out of shape because they have planned according to a previous, more bullish Apple forecast and are now faced with over-capacity problems.

Of the new models it seems that the cheaper XR is the one that is most undershooting initial expectations, with the WSJ suggesting orders may have been cut by a third. This has apparently all come as a nasty shock, although if those suppliers had been tracking Apple’s recent earnings announcements, in which it down-graded its forecast,  they might have been better prepared.

The piece cites a bunch of circumstantial evidence, such as overtime being cut at Foxconn, as further evidence and it’s interesting to speculate about the reasons. It’s unlikely to be price, with the X having sold plenty and the cheaper model heaviest hit, so this is probably a cyclical thing. The global smartphone market has been in recession all year and people are probably waiting longer to replace their phones, especially the most expensive ones.

About the Author(s)

Scott Bicheno

As the Editorial Director of Telecoms.com, Scott oversees all editorial activity on the site and also manages the Telecoms.com Intelligence arm, which focuses on analysis and bespoke content.
Scott has been covering the mobile phone and broader technology industries for over ten years. Prior to Telecoms.com Scott was the primary smartphone specialist at industry analyst Strategy Analytics’. Before that Scott was a technology journalist, covering the PC and telecoms sectors from a business perspective.
Follow him @scottbicheno

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