Apple to cut production of iPhone by 10 per cent

Apple to cut production of iPhone by 10 per cent

Sculley, who the late co-founder Jobs lured from PepsiCo PEP to Apple, pointed out that the first and later iPhone generations gradually took market share from Blackberry, Nokia and Motorola cell phones and revolutionized photography, eventually leading to Kodak's bankruptcy in 2012.

Apple iPhone sales were down by 20% on a yearly basis in November 2018, according to number shared by Counterpoint research.

Because Apple preannounced slower sales in Q4, the Nikkei is making out that Apple ordering 10 less iPhone for Q1 is some huge revelation. The report indicates that Apple is going to reduce production from 43 million units to 40 million iPhones. This new cut falls outside of the time frame for last week's blockbuster warning to investors from Apple CEO Tim Cook, which covered the fourth quarter of 2018.

Following Cook's message, Apple's stock went on an accelerated drop, experiencing a severe 38% drop between a maximum valuation of 232.07 per share on October 3 to an all-time low of $142.08 per share the day after the investor letter.

Cook gives the Interview in a time in which the exchanges respond emotionally to Apple and falling prices.

The report comes after chip suppliers Samsung Electronics and Skyworks Solutions flagged weak first-quarter chip demand for smartphones.

Foxconn, formerly known as Hon Hai Precision, is nearly as well known as Apple these days and is the rather infamous Taiwanese-based manufacturer of iPhones and other Apple-designed products. Pegatron declined to comment on the report when contacted by Reuters, while Foxconn did not immediately reply to a request for comment.

But Apple seems to think that it will continue to see lower demand for its products, if today's report is to be believed.

Market research firm Canalys estimated shipments of smartphones fell 12 per cent past year in China, the world's largest smartphone market.

Speaking to CNBC Tuesday, Cook said the company was planning to announce "new services" later this year, without elaborating on what those might be. Apple sold 52.21 million iPhones in the same period past year, according to Nikkei.

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