Apple cuts first quarter 2019 iPhone production by 10 percent, report says

Posted:
in iPhone edited January 8
On the back of Apple's negative earnings forecast revision, a new report claims the company is bracing for a continued iPhone sales slowdown by scaling back production plans for the first calendar quarter of 2019 by 10 percent.

iPhone XR
Apple's iPhone XR


Citing sources close to the matter, Nikkei Asian Review on Wednesday said Apple last month asked partner suppliers to manufacture fewer iPhones than originally planned for the three-month period ending in March. According to the publication, the recent supplier update marks Apple's second request to draw down production in as many months.

The revision reportedly affects all new model iPhones, which include the iPhone XS, XS Max and XR. Old models are also impacted, with the company now targeting production of between 40 million to 43 million total iPhone units for the first quarter, down from earlier estimates of 47 million to 48 million units, the report said.

"The level of revision is different for each supplier and depends on the product mix they supply," a source said.

Today's reported estimates represent a 20 percent year-over-year contraction from the 52.2 million iPhones sold in the second fiscal quarter of 2018.

The report arrives less than a week after Apple adjusted down revenue guidance for the current holiday quarter. In a letter to investors, CEO Tim Cook blamed the shortfall on weaker than expected iPhone sales in China and other developing nations.

Cook in an interview today addressed concerns of a slowing iPhone market. In particular, when asked to comment on reports calling the iPhone XR a "flop," Cook said the mid-range handset has outsold its more expensive iPhone XS stablemates every day since its launch in October.
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Comments

  • Reply 1 of 38
    Hmmm...maybe it's time to revisit the SE form factor?
    designrMisterKitmuthuk_vanalingam80s_Apple_Guycincytee
  • Reply 2 of 38
    Oh look more horseshit about a metric that is not indicative of Apple’s business any more. Let alone estimates from who!? Oh thats right, same dumbasses that dont know how to value Apple beyond a shitty consumer electronics company like Samsung Mobile, Palm, and Xiaomi amongst others out of business or will be within a decade. Also the same dumbasses that misreported the same tripe almost like clockwork for the last 8 years. 
    watto_cobra
  • Reply 3 of 38
    CaptainPaulCaptainPaul Posts: 1unconfirmed, member
    Hmmm... Maybe it's time Apple stoped being so greedy, money and profit orientated and got back to selling great products at an affordable / decent price.
    Cook supposedly says "the iPhone XR has outsold the XS since it's launch in October", ummm yeah, could it be because the XR is a shit wad cheaper than the XS?!
    Don't get me wrong, coz I am an Apple user / lover going on 20 years and I would dearly love to "upgrade" my ageing iPhone 6 to a lovely new current model iPhone but, not at these ludicrous prices.
    Secondly, Apple has reverted back to it's John Scully days of saturating the market with multiple versions of the same product and Apple was 90 days away from being bankrupt. Something Steve Jobs eradicated upon his return to Apple in the 90's and we know how well the company did after that.
    Sorry Mr Cook, you're probably a nice guy but, the advances of technology and idea's died with Steve Jobs and you do not have the ability to think outside the box, therefore, Apple seems to be going no where, whilst still bashing up the prices beyond belief, all the while releasing buggy software that makes the Apple Eco-sphere verging on being as bad as Microcrap (you know who I'm talking about).
    Personally, Steve Jobs should have left Tim Cook in his previous post crunching numbers and doing supply orders. Steve should have made Craig Federighi CEO and front man for the Apple business and brand.
    Rant mode = off ;-)
    Come on Apple, lets get back to being inspiring and great, without the overly high price tags you THINK you can command. Before it's too late.
    muthuk_vanalingam80s_Apple_Guybdkennedy1002mike54kitatitatomic101propod
  • Reply 4 of 38
    JFC_PAJFC_PA Posts: 306member
    Nikkei usually “reports” cuts in the 50% range. And is wrong every time. 
    edited January 9 watto_cobra
  • Reply 5 of 38
    seankillseankill Posts: 462member
    dedgecko said:
    Oh look more horseshit about a metric that is not indicative of Apple’s business any more. Let alone estimates from who!? Oh thats right, same dumbasses that dont know how to value Apple beyond a shitty consumer electronics company like Samsung Mobile, Palm, and Xiaomi amongst others out of business or will be within a decade. Also the same dumbasses that misreported the same tripe almost like clockwork for the last 8 years. 
    When did iPhone hardware revenues stop being over half of Apple’s business?
    asdasd
  • Reply 6 of 38
    k2kwk2kw Posts: 1,717member
    dedgecko said:
    Oh look more horseshit about a metric that is not indicative of Apple’s business any more. Let alone estimates from who!? Oh thats right, same dumbasses that dont know how to value Apple beyond a shitty consumer electronics company like Samsung Mobile, Palm, and Xiaomi amongst others out of business or will be within a decade. Also the same dumbasses that misreported the same tripe almost like clockwork for the last 8 years. 
    This fiscal Q2 will be worse because the Asian new year is usually a very good quarter for Apple.   The slow down in China will hit them hard this year.   Hopefully they come out will compelling phones in Sept. so next year will be better.
  • Reply 7 of 38
    rogifan_newrogifan_new Posts: 3,922member
    dedgecko said:
    Oh look more horseshit about a metric that is not indicative of Apple’s business any more. Let alone estimates from who!? Oh thats right, same dumbasses that dont know how to value Apple beyond a shitty consumer electronics company like Samsung Mobile, Palm, and Xiaomi amongst others out of business or will be within a decade. Also the same dumbasses that misreported the same tripe almost like clockwork for the last 8 years. 

    Uh, iPhone is still VERY indicative of Apple’s business. Tim Cook wouldn’t have put out a 1,400 word letter to investors (all about iPhone) if it wasn’t. iPhone hits a rough patch...hey but Apple’s a services business now! It’s all about the ecosystem! Sorry doesn’t work that way.
    edited January 9 mike54asdasd
  • Reply 8 of 38
    lennlenn Posts: 36member
    Cook is a numbers guy. He's all about profit margins that's why he keeps raising the price on Apple products. Since he's taken over Apple has gotten more and more out of touch with their average customers and are catering to the more affluent segment of the population. They are turning into the BMW of tech companies. Over engineering everything(MacPro), charge a ton of money for it and tell people they are having the best experience in the industry. Cook doesn't understand that we don't need the absolute thinnest, best looking, ect PC or phone. The OS is what made Apple great. Not the hardware that runs it. And look at that colossal waste of money that new "spaceship" campus is.  And let's not forget the huge tax gift Trump  gave Apple only to have Apple use most of it to buy back their shares when the stock price was at or near it's highest point loosing close to 10 billion dollars. That alone would have been cause for most CEOs to be fired.
    muthuk_vanalingam80s_Apple_Guybdkennedy1002mike54jumekitatit
  • Reply 9 of 38
    emig647emig647 Posts: 2,408member
    lenn said:
    And look at that colossal waste of money that new "spaceship" campus is.  And let's not forget the huge tax gift Trump  gave Apple only to have Apple use most of it to buy back their shares when the stock price was at or near it's highest point loosing close to 10 billion dollars. That alone would have been cause for most CEOs to be fired.
    The apple campus started with Jobs... https://m.youtube.com/watch?v=8VvconxePlE
    ktappe
  • Reply 10 of 38
    ktappektappe Posts: 759member
    dedgecko said:
    Oh look more horseshit
    After reading your post twice, I'm still clueless what your point is. You claim it's all wrong, but aren't saying what's correct.
    muthuk_vanalingamgatorguy
  • Reply 11 of 38
    Hmmm... Maybe it's time Apple stoped being so greedy, money and profit orientated and got back to selling great products at an affordable / decent price.
    Cook supposedly says "the iPhone XR has outsold the XS since it's launch in October", ummm yeah, could it be because the XR is a shit wad cheaper than the XS?!
    Don't get me wrong, coz I am an Apple user / lover going on 20 years and I would dearly love to "upgrade" my ageing iPhone 6 to a lovely new current model iPhone but, not at these ludicrous prices.
    Secondly, Apple has reverted back to it's John Scully days of saturating the market with multiple versions of the same product and Apple was 90 days away from being bankrupt. Something Steve Jobs eradicated upon his return to Apple in the 90's and we know how well the company did after that.
    Sorry Mr Cook, you're probably a nice guy but, the advances of technology and idea's died with Steve Jobs and you do not have the ability to think outside the box, therefore, Apple seems to be going no where, whilst still bashing up the prices beyond belief, all the while releasing buggy software that makes the Apple Eco-sphere verging on being as bad as Microcrap (you know who I'm talking about).
    Personally, Steve Jobs should have left Tim Cook in his previous post crunching numbers and doing supply orders. Steve should have made Craig Federighi CEO and front man for the Apple business and brand.
    Rant mode = off ;-)
    Come on Apple, lets get back to being inspiring and great, without the overly high price tags you THINK you can command. Before it's too late.

    Please refrain from posting your ignorant tirades in the future, it exposes your lack of respect for the efforts of countless Apple engineers, efforts and our community.  Spend a few moments with google, then articulate your message with facts and opinions.

    Your pricing statements are relative and hopefully you pay for an education before another iPhone, “coz” a base model XR is $749 without trade in, or ~$20 month if you average it out 3 years.  Maybe you don’t know an iPhone can be leased or financed without interest?

    Its not “greedy” that Apple maintains a healthy margin to reinvest strategically. Your contradiction is obvious, Apple needs to make great products that are affordable to you, and at a reduced margin.  Your second point regarding multiple versions is also incorrect, you’re comparing two different things.  Limited color, storage, and screen size options across so many millions of devices is necessary for market needs.  Not to be confused with Apple’s old overlapping and  confusing product portfolio.

    Since you obviously have no knowledge of scales of economies, market segmentation, consumer needs, research & development, global expansion, supply chain & component contracts, and the endless innovation at Apple.  You should take your 1 post self to the closest carrier and get a free Android device.


    In case your interested in reality, it takes massive amounts of money to innovate.  No other consumer electronics company in the world can innovate at Apple’s level, not for lack of spending money or trying.  I guess you expect a paradigm shifting product every couple years and that Apple can single handedly push the state of the art along so many fronts.  Oh wait, Apple is doing that, but you wouldn’t notice.  

    Here’s an incomplete list of things Apple is improving or innovating; yearly upgrades to the ‘A’ series processors approaching intel chip capabilities, mobile GPUs, computer on chips, computers, countless integrated component chips, health sensors cleared by the FDA, smart speaker, wireless headphones, watches, augmented reality, mapping, neural chips, advanced biometrics, customer privacy, life saving health alerts, smart home API, voice assistant, coding language, web engine, tablets, graphics API, multiple operating systems every year, streaming music, media network, news, cloud services, customer service, artificial intelligence, Titan car project, and the company that will make augmented reality ubiquitous.


    Hopefully you don’t also think that hardworking people making an income larger than yours are greedy and ludicrous.  Thanks for playing...

    Rayz2016rob55watto_cobra
  • Reply 12 of 38
    ajlajl Posts: 100member
    Tim Cook raises price => Apple sells less.
    bdkennedy1002kitatitpropod
  • Reply 13 of 38
    seankill said:
    dedgecko said:
    Oh look more horseshit about a metric that is not indicative of Apple’s business any more. Let alone estimates from who!? Oh thats right, same dumbasses that dont know how to value Apple beyond a shitty consumer electronics company like Samsung Mobile, Palm, and Xiaomi amongst others out of business or will be within a decade. Also the same dumbasses that misreported the same tripe almost like clockwork for the last 8 years. 
    When did iPhone hardware revenues stop being over half of Apple’s business?
    Indeed. Very true.  

    Plus the user base needs to keep growing to generate all that “service revenue” growth as well they are keen to emphasise. 

    Cook said yesterday “people underestimate Apple’s revenue generating potential “ and by that he means the ability to bleed that user base dry with services (Apple Pay / TV / Music etc) plus price rises. 

    But he’s gotta keep selling more iPhones. 
  • Reply 14 of 38
    LordeHawk said:
    Hmmm... Maybe it's time Apple stoped being so greedy, money and profit orientated and got back to selling great products at an affordable / decent price.
    Cook supposedly says "the iPhone XR has outsold the XS since it's launch in October", ummm yeah, could it be because the XR is a shit wad cheaper than the XS?!
    Don't get me wrong, coz I am an Apple user / lover going on 20 years and I would dearly love to "upgrade" my ageing iPhone 6 to a lovely new current model iPhone but, not at these ludicrous prices.
    Secondly, Apple has reverted back to it's John Scully days of saturating the market with multiple versions of the same product and Apple was 90 days away from being bankrupt. Something Steve Jobs eradicated upon his return to Apple in the 90's and we know how well the company did after that.
    Sorry Mr Cook, you're probably a nice guy but, the advances of technology and idea's died with Steve Jobs and you do not have the ability to think outside the box, therefore, Apple seems to be going no where, whilst still bashing up the prices beyond belief, all the while releasing buggy software that makes the Apple Eco-sphere verging on being as bad as Microcrap (you know who I'm talking about).
    Personally, Steve Jobs should have left Tim Cook in his previous post crunching numbers and doing supply orders. Steve should have made Craig Federighi CEO and front man for the Apple business and brand.
    Rant mode = off ;-)
    Come on Apple, lets get back to being inspiring and great, without the overly high price tags you THINK you can command. Before it's too late.

    Please refrain from posting your ignorant tirades in the future, it exposes your lack of respect for the efforts of countless Apple engineers, efforts and our community.  Spend a few moments with google, then articulate your message with facts and opinions.

    Your pricing statements are relative and hopefully you pay for an education before another iPhone, “coz” a base model XR is $749 without trade in, or ~$20 month if you average it out 3 years.  Maybe you don’t know an iPhone can be leased or financed without interest?

    Its not “greedy” that Apple maintains a healthy margin to reinvest strategically. Your contradiction is obvious, Apple needs to make great products that are affordable to you, and at a reduced margin.  Your second point regarding multiple versions is also incorrect, you’re comparing two different things.  Limited color, storage, and screen size options across so many millions of devices is necessary for market needs.  Not to be confused with Apple’s old overlapping and  confusing product portfolio.


    You sir have drank so much of the Apple kool  aid that you can’t see the wood for the trees. 

    Apple cant have it both ways - creating an ever growing mass user base and ridiculously high prices.  One has to give. 

    They will I’ll say they don’t care about the mass market but in the next breath talk about how many iOS devices they have to sell services to. 
    mike54muthuk_vanalingamkitatitpropod
  • Reply 15 of 38
    jumejume Posts: 191member
    lenn said:
    Cook is a numbers guy. He's all about profit margins that's why he keeps raising the price on Apple products. Since he's taken over Apple has gotten more and more out of touch with their average customers and are catering to the more affluent segment of the population. They are turning into the BMW of tech companies. Over engineering everything(MacPro), charge a ton of money for it and tell people they are having the best experience in the industry. Cook doesn't understand that we don't need the absolute thinnest, best looking, ect PC or phone. The OS is what made Apple great. Not the hardware that runs it. And look at that colossal waste of money that new "spaceship" campus is.  And let's not forget the huge tax gift Trump  gave Apple only to have Apple use most of it to buy back their shares when the stock price was at or near it's highest point loosing close to 10 billion dollars. That alone would have been cause for most CEOs to be fired.
    That couldn't be said more correctly.

    Cook has lost the reality. No clear innovation, just numbers and pointless features like animojis, stupid AR and things that you don't use ever just to increase the prices.

    Apple will be crying in few years for a visionary like Jobs.

    How I see it what happened with Cook:

    - prices went up
    - quality of the products down (iPhone, Mac, haven't been using anything else since Jobs died)

    At list software keeps the quality standards still high, though, really lots of stupid features get introduced that you never use and some basics are missing since years!
    edited January 9 kitatit
  • Reply 16 of 38
    saareksaarek Posts: 1,123member
    lenn said:
    Cook is a numbers guy. He's all about profit margins that's why he keeps raising the price on Apple products. Since he's taken over Apple has gotten more and more out of touch with their average customers and are catering to the more affluent segment of the population. They are turning into the BMW of tech companies. Over engineering everything(MacPro), charge a ton of money for it and tell people they are having the best experience in the industry. Cook doesn't understand that we don't need the absolute thinnest, best looking, ect PC or phone. The OS is what made Apple great. Not the hardware that runs it. And look at that colossal waste of money that new "spaceship" campus is.  And let's not forget the huge tax gift Trump  gave Apple only to have Apple use most of it to buy back their shares when the stock price was at or near it's highest point loosing close to 10 billion dollars. That alone would have been cause for most CEOs to be fired.
    My personal take is that Apple has always been the Mercedes of the industry, they were never cheap, and that is a good thing!

    The problem, as I see it, is two fold. First, there is no one to reign in Jony anymore. The new MacBook Pro's are beautiful to look at and hold, but it's very much a form over function design.

    Jonathan is an amazing designer, what he and his team have achieved is mind blowing. But they need to be reigned in and forced to fit their designs in with what their customers need and the engineers recommend as opposed to the other way around.

    I remember Intel getting burned badly by being led by marketing over engineering with the Pentium 4, what a terrible design that was, all so that they could post fast MHz numbers which customers associated with speed.

    Second, Tim Cook's strategy of price hiking the products every single year, whilst selling less units every single year. The Mac used to receive annual updates across the board, even if it was just a simple CPU/GPU refresh, and the pricing was roughly 20-30% more than a genuinely comparable PC from HP or Dell. Now they are 50% more at least and apart from the MacBook Pro rarely get refreshed.

    The iPhone used to be demonstrably better than the clones from Samsung and everyone else, and as with any Apple product you expect to pay a premium for iOS and the whole Apple experience.

    But can anyone really argue that the iPhone XS is 4X better than the Pocophone F1, because that is how much more it costs. Perhaps it is 3X better than the Huawei P20 Pro, no, I don't think a reasonable person could argue that either.

    The iPhone XS line is fantastic, I know because I own an iPhone XS Max which I got for a very good deal, but they are no longer even close to reality in terms of pricing vs what you get and that is a HUGE problem.

    edited January 9 muthuk_vanalingamcroprjumeavon b7kitatit80s_Apple_Guypropod
  • Reply 17 of 38
    lenn said:
    Cook is a numbers guy. He's all about profit margins that's why he keeps raising the price on Apple products. Since he's taken over Apple has gotten more and more out of touch with their average customers and are catering to the more affluent segment of the population. They are turning into the BMW of tech companies.
    Apple is a premium brand and that's reflected by premium prices.  Apple products are for affluent consumers, not the peasants that buy cheap android rubbish.  If somebody cannot afford an iPhone then they should look to improve themselves and not expect Apple to lower themselves to appeal to the lowest common denominator.  Average customers buy average products.  Apple products are above average and are perched at the very top.
  • Reply 18 of 38
    jumejume Posts: 191member
    lenn said:
    Cook is a numbers guy. He's all about profit margins that's why he keeps raising the price on Apple products. Since he's taken over Apple has gotten more and more out of touch with their average customers and are catering to the more affluent segment of the population. They are turning into the BMW of tech companies.
    Apple is a premium brand and that's reflected by premium prices.  Apple products are for affluent consumers, not the peasants that buy cheap android rubbish.  If somebody cannot afford an iPhone then they should look to improve themselves and not expect Apple to lower themselves to appeal to the lowest common denominator.  Average customers buy average products.  Apple products are above average and are perched at the very top.
    Don't be such a fanboy.

    Apple set mad prices. Market reacted by not buying, wether you like it or not. Thats why we have this forum thread.

    Like @Saarek said. iPhone is the best phone, but is not x4 better than Huawei, Samsung and other knockoffs. And its priced 4x!! Yeah iPhone has great design, hw and the best software. But far from what you are saying cheap Android rubbish. There are some decent Android phones that can do everything iPhone can and even do some things better.
    edited January 9 saarekkitatitavon b7muthuk_vanalingampropod
  • Reply 19 of 38
    saareksaarek Posts: 1,123member
    lenn said:
    Cook is a numbers guy. He's all about profit margins that's why he keeps raising the price on Apple products. Since he's taken over Apple has gotten more and more out of touch with their average customers and are catering to the more affluent segment of the population. They are turning into the BMW of tech companies.
    Apple is a premium brand and that's reflected by premium prices.  Apple products are for affluent consumers, not the peasants that buy cheap android rubbish.  If somebody cannot afford an iPhone then they should look to improve themselves and not expect Apple to lower themselves to appeal to the lowest common denominator.  Average customers buy average products.  Apple products are above average and are perched at the very top.
    Apple has never been cheap, but they were always affordable in their target market, and justifiably so. Typically they were 20-30% more than their nearest competitor when looking at comparable specs across the board.

    They catered for the home and education market as well as the professional market and their prices reflected this. You had the iMac, Mac Mini and MacBook (later MacBook Air) for the home/students and the MacBook Pro and Mac Pro for the professional market.

    The cheapest Mac (Mac Mini) is now $799, in terms of notebooks it's $1200. That's just too much for the average person to even consider, let alone the poorer people whom you are so happy to sideline.

    I started my journey with the Mac when I was 19 and bought the original entry level Mac Mini. I was at that time what you'd probably class as a mere peasant, it was a really big investment for me at the time and required me to sell my beloved gaming PC and cash in a load of overtime.

    Since then I have grown up, secured a decent job and purchased more Apple equipment than I can remember, let alone the people I have converted over the years. I think I can safely say that Apple has sold at least £200,000 worth of computers and accessories out of personal recommendations from me over the years.

    But how can I convert people now, when the pricing is simply not justifiable? The new MacBook Air is beautiful, but it is also easily £400-500 more than the competitors from Dell or HP which, apart from the display resolution, completely kill it in terms of specifications and they have a pretty solid design to boot.

    How about the iPhone, how do I convince someone that the £999 iPhone XS is really at least twice as good as the heavily discounted Samsung Galaxy S9 at £500, let alone the competitors like Huawei?

    Apple always cost more, but you felt that you got more and you'd always make on resale.

    Recently I bought a 2017 MacBook Pro, it's the first time that I have bought a Mac and regretted it afterwards, in fact it has left a really sour taste in my mouth and I am unsure if I will keep it. You see the 2017 model without the touchbar did not get refreshed this year so it is still the dual core version, whereas the other models all got refreshed to quad core. The only reason Apple did this is to push people to spend £300 more on the touchbar version, the touchbar that almost none of their users want. Fuck that.

    So I refused to hand over £300 more, but now I feel screwed by Apple for buying last years already inflated priced tech at today's prices.
    kitatitmuthuk_vanalingampropod
  • Reply 20 of 38
    cincyteecincytee Posts: 260member
    saarek said:
    The problem, as I see it, is two fold. First, there is no one to reign in Jony anymore.
    That would be rein in, as in a horse, not reign, as in a monarch.
    MplsP
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