Published: Tue, November 20, 2018
Markets | By Erika Turner

Apple reportedly slashes production orders for iPhone XR and XS

Apple reportedly slashes production orders for iPhone XR and XS

The Journal cites the lower than anticipated demand for the new models and an overall shrinking smartphone market that has made it more hard for Apple to anticipate how many units it will need for the holiday season.

Cutting corners: Apple's most recent handsets, the iPhone XR, XS, and XS Max, didn't exactly set the smartphone industry ablaze with excitement, and it seems the company may have overestimated their popularity. Another reason that is being associated with low demand is the increase in the number of models that the company is offering in the market.

iPhone component makers are in turmoil, claims a WSJ report, as a result of Apple having to slash production orders for the iPhone XS, iPhone XS Max, and the iPhone XR as a result of weaker than expected demand. The XR has reportedly taken the biggest hit: Apple reduced production orders for the XR twice over the past two months.

Lumentum Holdings Inc (LITE.O), AMS AG (AMS.S), companies which supply Apple with software needed for its FaceID technology, also lowered their forecasts.

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Apple stock was down 2.6% as the market opened on Monday, to about $188.50 per share.

Analysts at Cowen & Co expect a modest hit from iPhone production cuts on memory chipmakers like Western Digital Corp.

Micron's shares were down 3.4 percent while Western Digital was down 1.7 percent.

Micron Technology Inc fell 1.7 per cent after a report that Chinese authorities have alleged "massive evidence" of antitrust violations by the world's top three memory chip makers - the latest industrial spat that threatens to upset global trade relations. Apple also has its services business to help continue to grow revenue even if the iPhone falters.

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