Apple, which slashed its quarterly sales forecast last week, has reduced planned production for its three new iPhone models by about 10 percent for the January-March quarter, the Nikkei Asian Review reported on Wednesday. This year, though, the company will continue betting big on iPhone with three new handsets.
According to The Wall Street Journal, who cited people familiar with the matter, Apple is planning to release three new iPhone models, including a successor to the struggling XR, its lower priced device released past year that has failed to meet sales expectations.
The problem is that even if Apple now wanted to pivot away from releasing an iPhone with an LCD display, it's likely too late in the planning cycle for Apple to make any significant changes. This rumor isn't new, but it's coupled with the idea that the iPhone XR hasn't sold as well as Apple thought it would. In fact, it's believed that Apple might be looking to reduce its inventory for the iPhone, particularly as it's nearly a fact that the company overshot its expectations for iPhone sales this quarter. The retailer has also discounted the iPhone 8; a device that's also the target of discounts by other retailers. The flagship iPhone product earns Apple about two-thirds of its revenue, and allows the company to generate more money from attached products like Apple Watches, AirPods, and services like Apple Music. That seems to be the case with Apple's 2018 lineup of iPhones, which are the most expensive ever introduced for customers.
And after Apple announced last week that it was forced to revise its guidance downward for the first fiscal quarter due to lower-than-expected iPhone sales in China, many sounded the alarms.
CEO Tim Cook used a TV interview earlier this week to try to reassure investors-and, surely, consumers-that there is "a culture of innovation in Apple".
Thoughts? Let us know what you think in the comments section below and stay tuned.