Apple’s CEO, Tim Cook sent a letter to investors last week to inform them that the company is expected to lose $9 billion in revenue in the first quarter of 2019. In a recent report from Nikkei Asian Review, Apple is expected to cut down production of new iPhones by 10%.
The report also stated that Apple asked its suppliers to reduce the production of new models last month, long before the company announced the earnings warnings.
People familiar with the matter told Nikkei Asian Review that the production target for new and old iPhones was slashed to 40 to 43 million units from 47 to 48 million units for the January-March quarter.
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Apple sold 52.21 million iPhones in the January-March quarter of last year. That number is expected to go down due to the low patronage of iPhones and revenue adjustments.
In Tim Cook’s letter, he also added that one of the main reasons why Apple had to adjust its revenue target was due to low demand for iPhones in China. It’ll be interesting to see if Apple cuts down iPhone prices to entice customers and increase sales.