Apple cutting older iPhone production, 2019 iPhone schedule on track says supply chain rep...

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in iPhone
Apple will be making cuts to production for its older iPhone models in the third quarter, Rosenblatt Securities predicts, but while the 2019 iPhone manufacturing effort is thought to be on schedule, the analysts don't believe market share will be maintained in China due to the turbulent trade relations with the United States.




In a "smartphone supply chain" note to investors seen by AppleInsider, Rosenblatt states it believes Apple will be reducing its orders for "older iPhone model production" slightly for the third quarter, though declines to mention exactly what models will be affected by the change.

On the other end of the scale, the 2019 iPhones' "product ramp schedule" is "on track." While there are no specifics offered in relation to this proclamation, it is to be expected Apple would keep to the production schedule where possible, making the message one of reassurance that there won't be a delay in the iPhone's release.

Turning to the 2018 models, Rosenblatt thinks the inventory for the iPhone XS and iPhone XS Max has increased in the second quarter so far. It is plausible the higher inventory could be from reduced shipments, though it could also be from Apple not cutting production for the models as time draws closer to the launch of new handsets in September.

The iPhone XR, however, is said to be faring worse, with sales for the model claimed to be declining "due to normal Q2 seasonality." The claim is made despite other reports in May suggesting the iPhone XR was the most popular smartphone in North America during the March quarter.

Rosenblatt continues to briefly cover the "increasing tension between the US and China" in relation to Apple, believing the iPhone will continue to lose market share. The view is relatively similar to those of other analysts, who have predicted reduced iPhone sales following the levying of US sanctions against Huawei, which is anticipated to grow market share in China at the expense of US brands like Apple.

The supply chain report also covered other companies, with Huawei tipped to release the "Hong Meng" operating system in the fourth quarter as a replacement for Android. Huawei has allegedly shipped 1 million smartphones with the software onboard for testing, with the software also said to be compatible with all Android applications and has "increased security functions to protect personal data."

The Huawei affair may benefit Samsung, as Rosenblatt believes the South Korean giant has increased its component orders for around 10 million units this week, due to an expectation it will gain market share in Europe, Japan, and Taiwan. Samsung's smartphone sales are estimated to reach between 15 million and 20 million units in the second half of 2019.

Comments

  • Reply 1 of 12
    seanismorrisseanismorris Posts: 1,088member
    Anyone else think Apple is releasing new models to quickly?  They’re sapping the excitement...  

    Having a year old $1000 phone that is obsolete must be annoying...

    On the bright side, the XR is going to be an even better value...
  • Reply 2 of 12
    racerhomie3racerhomie3 Posts: 1,160member
    Anyone else think Apple is releasing new models to quickly?  They’re sapping the excitement...  

    Having a year old $1000 phone that is obsolete must be annoying...

    On the bright side, the XR is going to be an even better value...
    Even the iPhone 5S is not obsolete. It has LTE ,a good camera, okay performance with iOS 12. A quick battery replacement makes older iPhones really usable. iPhone X & XS will remain usable until the 2030s.
    muthuk_vanalingamcornchip
  • Reply 3 of 12
    racerhomie3racerhomie3 Posts: 1,160member
    Anyone else think Apple is releasing new models to quickly?  They’re sapping the excitement...  

    Having a year old $1000 phone that is obsolete must be annoying...

    On the bright side, the XR is going to be an even better value...
    I know people in South East Asia with iPhone 2G,3GS ,4,4S & 5. Most have had their batteries replaced. FaceTime even on iPhone 4 on iOS 7 remains usable.
    cornchip
  • Reply 4 of 12
    MplsPMplsP Posts: 1,674member
    Anyone else think Apple is releasing new models to quickly?  They’re sapping the excitement...  

    Having a year old $1000 phone that is obsolete must be annoying...

    On the bright side, the XR is going to be an even better value...
    Even the iPhone 5S is not obsolete. It has LTE ,a good camera, okay performance with iOS 12. A quick battery replacement makes older iPhones really usable. iPhone X & XS will remain usable until the 2030s.
    very true. Some people seem to think that anything without 5G will be obsolete next year, but there is a large user base that does not use or need all of the capabilities on new phones. My wife has a 3 ½ year old 6S that still works perfectly for her. I would still have mine, too but the camera started acting up before a family vacation. The Xs is definitely nice, and much quicker, but the 6S is still a very good phone.

    @seanismoris: just because your $1000 phone is no longer the top of the line doesn't mean it's obsolete. If you are worried about always having the latest phone then you should sign up for the iPhone upgrade program. Otherwise, look at what you need your phone to do, not what the newest phone can do.
    StrangeDaysmuthuk_vanalingam1STnTENDERBITScornchip
  • Reply 5 of 12
    lmaclmac Posts: 195member
    Apple is fixing this. For those who want to pay less and are fine with buying below top-of-the-line, this option has been removed.
  • Reply 6 of 12
    lkrupplkrupp Posts: 7,315member
    How many times has Tim Cook advised us not to pay attention to supply chain rumors?
    cornchip
  • Reply 7 of 12
    StrangeDaysStrangeDays Posts: 8,584member
    Anyone else think Apple is releasing new models to quickly?  They’re sapping the excitement...  

    Having a year old $1000 phone that is obsolete must be annoying...

    On the bright side, the XR is going to be an even better value...
    No. And you’re incorrect, a non-brand-new iPhone is anything but obsolete. By that logic every car on the road that didn’t drive off a new car lot is “obsolete”. Completely wrong, of course. Same thing. The day that your $1000 pocket computer (hardly just a “phone”) doesn’t get software updates or can no longer run modern apps, then you could argue it’s obsolete. Not before. 
    fastasleep
  • Reply 8 of 12
    techsavytechsavy Posts: 34member
    Anyone else think Apple is releasing new models to quickly?  They’re sapping the excitement...  

    Having a year old $1000 phone that is obsolete must be annoying...

    On the bright side, the XR is going to be an even better value...
    I dont think that every new year makes the previous obsolete. However I think making each phone come out yearly does negatively harm phones in general. By making a new phone every year the next thing is usually just a bit better than before. There is nothing crazy to be excited for.
  • Reply 9 of 12
    jcs2305jcs2305 Posts: 829member
    Anyone else think Apple is releasing new models to quickly?  They’re sapping the excitement...  

    Having a year old $1000 phone that is obsolete must be annoying...

    On the bright side, the XR is going to be an even better value...
    Please explain how the XS Max I have in my pocket right now will suddenly be obsolete in 3 months?  You can't.. because it won't be. Comments like this are what sap the excitement between releases.. sheesh.

    Apple deems products obsolete that have been discontinued more than 7 years ago FYI..






    shark5150
  • Reply 10 of 12
    fastasleepfastasleep Posts: 3,171member
    techsavy said:
    Anyone else think Apple is releasing new models to quickly?  They’re sapping the excitement...  

    Having a year old $1000 phone that is obsolete must be annoying...

    On the bright side, the XR is going to be an even better value...
    I dont think that every new year makes the previous obsolete. However I think making each phone come out yearly does negatively harm phones in general. By making a new phone every year the next thing is usually just a bit better than before. There is nothing crazy to be excited for.
    So don’t buy one every year. 
    MplsP
  • Reply 11 of 12
    mattinozmattinoz Posts: 1,142member
    So analysist believe everything is normal for this time of year. 
  • Reply 12 of 12
    cornchipcornchip Posts: 1,397member
    mattinoz said:
    So analysist believe everything is normal for this time of year. 
    Right. 

    This just in: Apple good at managing supply chain.

    Wow. thanks for this insight, Nostradamus. 
    FileMakerFellerfastasleep
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