Apple shortens iPhone production
Christmas business could be weaker
According to information from insiders, tech giant Apple is shortening the production of smartphones. The reason is supposed to be the weak demand for the three newest iPhones.
The Wall Street Journal reports that the lower level of production has been in place since September. Apple has not yet commented on the media reports.
Suppliers feel the effects of cuts
The production cuts also affect suppliers along the supply chain. Examples are the Austrian sensor manufacturer AMS, chip manufacturer IQE or Lumentum. The latter contributes components for the face recognition of the new iPhone. These suppliers felt the impact of the cut in their forecasts.
The fact that production of the XR model has come to a standstill was announced at the beginning of November. The Japanese business newspaper “Nikkei” reported that Apple had stopped production lines. Originally, additional lines had been planned to meet demand.
Technical problems at Apple
Recently, the US Company had made headlines, as technical problems with iPhones and Mac models repeatedly occur. The iPhone X from 2017 and some models of the MacBook Pro with a 13-inch screen should be affected.
And another problem could be around the corner soon, because the usually booming Christmas business could turn out to be weaker than initially expected according to the latest forecasts. The market reacted shocked to this news. The share price collapsed as a result.