By asharkyu @ Shutterstock.com
With little information to go on regarding future iPhone sales, and possibly canceled orders from Apple impacting business, iPhone suppliers are being trashed in markets. Yoko Kubota, Takashi Mochizuki and Tripp Mickle write for The Wall Street Journal:
Lower-than-expected demand for Apple Inc.’s AAPL -2.77% new iPhones and the company’s decision to offer more models have created turmoil along its supply chain and made it harder to predict the number of components and handsets it needs, people familiar with the situation say.
In recent weeks, Apple slashed production orders for all three of the iPhone models that it unveiled in September, these people said, frustrating executives at Apple suppliers as well as workers who assemble the handsets and their components.
Forecasts have been especially problematic in the case of the iPhone XR. Around late October, Apple slashed its production plan by up to a third of the approximately 70 million units it had asked some suppliers to produce between September and February, people familiar with the matter said.
And in the past week, Apple told several suppliers that it cut its production plan again for the iPhone XR, some of the people said Monday, as Apple battles a maturing smartphone market and stiff competition from Chinese producers.
Read more here.
Jeremy Jones, CFA
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