mike scherer
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Apple said to be cutting iPhone X production in half due to slow sales
I thought it might be appropriate to mention this:
One way businesses manage inventory against uncertain demand is to require their suppliers accept adjustable POs (within mutually agreed-upon parameters). So Apple could have placed a PO for UP TO 40 million phones and simply revised it as agreed. This aligns inventory with demand very quickly.
Note that these types of agreements do not actually cancel the products ordered on early POs. Inventoried parts and manufacturing time are simply moved to later in the year. It's not rocket science...
-Mike
