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Apple predicted to slash iPhone production, again

By midian182 · 25 replies
Dec 21, 2018
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  1. Rosenblatt analyst Jun Zhang wrote in an investor note that Apple could cut iPhone production by four million units during the firm’s fiscal second quarter.

    While Apple’s previous reduction in production orders can be attributed to its optimism when predicting the handsets’ sales, Zhang writes that the new cuts will mostly be due to the turmoil Apple faces in China.

    At the start of the month, Huawei’s CFO, Meng Wanzhou, was arrested in Canada at the request of the United States for allegedly violating sanctions against Iran. According to Zhang, many Chinese companies are supporting Huawei by subsidizing employees who purchase devices from the company instead of iPhones.

    Zhang believes the iPhone XR will be most affected. The cheapest of Apple’s latest iPhones has reportedly already seen its production numbers cut by a third, and it will take another 2.5 million hit during the quarter. Some reviewers found the cheaper iPhone XR to be the most impressive of all three 2018 iPhones, but it seems many Apple fans aren’t convinced.

    The iPhone XS, meanwhile, may see its production cut by 1 million units, while the iPhone XS Max's could be dropped by 500,000.

    The production cuts have seen many iPhone suppliers reduce their quarterly profit estimates, and it was reported that Foxconn had decreased its overtime hours. Apple’s biggest assembler of handsets is also cutting $3 billion from its costs ahead of a “difficult 2019.”

    Permalink to story.

  2. Uncle Al

    Uncle Al TS Evangelist Posts: 5,255   +3,670

    I'm curious to know if the drop in popularity is having to shell out $1,000 each new edition plus minimal "upgraded" features or if any of it is geo-political? Of course it could also be a marketing ploy to make them less available so they can further drive up the price in conjunction with the old "supply vs. demand" model?
    Reehahs, p51d007 and ShObiT like this.
  3. xxLCxx

    xxLCxx TS Addict Posts: 231   +153

  4. p51d007

    p51d007 TS Evangelist Posts: 1,927   +1,197

    Probably more to do with the PRICE than anything China did, or does.
    Who wants to shell out 1500 bucks, for a sideways upgrade phone, just to get the apple logo?
    Plus, in China, with their social media "credit score", since those people are the hostage of the
    Chinese communist government, everything they do is monitored, you think they will buy an
    AMERICAN product, over a CHINESE product? That's why Huawei is at the top of their market.
    toooooot and Reehahs like this.
  5. cliffordcooley

    cliffordcooley TS Guardian Fighter Posts: 11,265   +4,933

    You would think they are afraid of joining Steve Jobs, if they ever slashed prices?
  6. xxLCxx

    xxLCxx TS Addict Posts: 231   +153

    The social media "credit score" is a myth. Repeating it often still doesn't make it anymore real.
    Huawei is doing pretty well in most markets. They have top hard- and software at convenient prices.
    Reehahs likes this.
  7. Adi6293

    Adi6293 TS Maniac Posts: 191   +155

    What I dont understand is what gives USA the right to arrest or ask to arrest somebody who does business with Iran? China is an independent country they can deal with whoever they want and so can Chinese companies.....
    xxLCxx likes this.
  8. Theinsanegamer

    Theinsanegamer TS Evangelist Posts: 1,526   +1,737

    If the US government has approved an economic sanction against iran, and you go do business with iran from your US business anyway, you are violating federal law. Not really that hard to understand.
  9. toooooot

    toooooot TS Evangelist Posts: 752   +366

    USA thinks, and not without grounds, that it has helped China greatly to get where china is today. Being able to stop or cut many things China benefits today, they have the right/ability to "ask" them to stop helping Iran.
    This is my interpretation of this story: You are working for some company where you are pretty good at what you do. And when you notice a young clueless fella, you decide to help him get promotion at your company. You are not doing this out of your selfless heart, you see his potential. But you also know that he might never get so successful without your help. Then, as this young fella gets strong and good at what he does, he sides with your least liked person at the company. You know that he is also far from selfless and gets something in return, but you also feel that the young fella got much more from you than your nemesis and therefore should be able to appreciate you enough to at least not help your enemies. To me this is what USA doing. They proclaimed that Iran shouldn't be helped, especially by the countries tightly involved in trade and technology with USA. After all, USA has much more power in the world than China. So if China wants to help Iran, they should first decide if their trade with USA more or less important. I dont think China would take Iran over USA. And USA knows this. Thats why they can arrest Huawei CEO.
  10. xxLCxx

    xxLCxx TS Addict Posts: 231   +153

    Last time I checked, the USA was as good as broke (tons of liabilities and no way of ever paying them back). Most of what they own, they own to China. ;-)
  11. xxLCxx

    xxLCxx TS Addict Posts: 231   +153

    Typo correction (as TECHSPOT won't let me edit):
    Most of what they owe, they owe to China.
  12. Adi6293

    Adi6293 TS Maniac Posts: 191   +155

    They way I see it, USA help China a little bit, China was very determined to get get where it is today. USA opened their marked to them and got them into WTO after that it was all China not USA
    xxLCxx likes this.
  13. mailpup

    mailpup TS Special Forces Posts: 7,378   +612

    You may edit using forum mode.
  14. cliffordcooley

    cliffordcooley TS Guardian Fighter Posts: 11,265   +4,933

    That is something Trump is trying to change.
  15. xxLCxx

    xxLCxx TS Addict Posts: 231   +153

    By filling his pockets? *Hmmm*
  16. xxLCxx

    xxLCxx TS Addict Posts: 231   +153

    Please specify! I'm new here. I tried via "Forums->my posts", but it still won't let me.
  17. cliffordcooley

    cliffordcooley TS Guardian Fighter Posts: 11,265   +4,933

    What difference does that make, if the changes benefit everyone under his leadership? BTW! If Trump was in it for the money, he wouldn't have become president. He currently makes no more than any other president before him.
  18. xxLCxx

    xxLCxx TS Addict Posts: 231   +153

    Are you six years old? You sound very naive.
    Trump has been making deals with countries (or rather: their corrupt leaders) on the basis that they filled his pockets. Basically, you got a clown willing to sell out your (and other) country for his personal profit. How do the people benefit from that?!?
    He's made tax cuts for the rich. They weren't the ones starving, you know... And guess who's gonna be paying for all that? Hint: It's not gonna be the rich!
  19. mailpup

    mailpup TS Special Forces Posts: 7,378   +612

    At the bottom of the article there is a link, "Jump to forum mode." However, I think there is a limited time during which you can edit your post.
    xxLCxx likes this.
  20. captaincranky

    captaincranky TechSpot Addict Posts: 14,779   +3,906

    Not true now. When this software was first installed, time was limited, then editing was forbidden entirely, which was frankly, a disaster.

    Now, editing appears to be unlimited, (as I firmly believe it should be), since I have returned days later to repair a spelling or syntax error.

    I am however, always making my first post in forum mode, no exceptions.
    Last edited: Dec 24, 2018
    xxLCxx likes this.
  21. xxLCxx

    xxLCxx TS Addict Posts: 231   +153

    Okay, thanks. :)
  22. mailpup

    mailpup TS Special Forces Posts: 7,378   +612

    Thanks for the correction. As a moderator I have always had unlimited time to edit but I couldn't tell how it is for other members.
    xxLCxx likes this.
  23. captaincranky

    captaincranky TechSpot Addict Posts: 14,779   +3,906

    @mailpup FWIW, I changed "as, to, "since" in the 2nd paragraph of my post #20 @ 4:12 PM EST, a 12+ hour delay, so the system is working as I specified.

    (Syntax correction, to avoid the redundancy of using "as" twice in the same sentence. I emboldened the change)..

    IIRC, the limited editing, then no editing issue, was in conjunction with the permission of "guest" posts in our "Weekend Open Forum" feature.

    After guest posting was disallowed, the edit function was restored in full. I do know these events were in the same basic time frame, but I'm only half certain the actions were predicated on one another.

    I guess while I'm at it I should wish you and yours a very happy holliday! :)(y) (Y)

    (You have, after all, put up with me for a bit over 12 years).
    Last edited: Dec 24, 2018
    xxLCxx likes this.
  24. mailpup

    mailpup TS Special Forces Posts: 7,378   +612

    Thank you very much. Merry Christmas and have a Happy New Year.
    xxLCxx and captaincranky like this.
  25. pkroliko1

    pkroliko1 TS Member Posts: 18

    This is a myth. While yes we owe China a lot of debt its not the majority of it(6%). Add on the fact the whole world is in debt, China is on the downswing in growth, and Europe also has piling problems its not just the US.

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