Many of the Apple suppliers have reported that they are cutting down the sales forecasts due to the reason that the iPhone models are not doing as expected. Reports from one of the leading dailies said that Apple has reduced the orders for its iPhone XS and the iPhone XR. The US based tech giant has reportedly found it tough to accurately predict the demand for its three model line-up at a time when the entire smartphone market has slowed down.
Even the changes in the production schedules are frustrating the suppliers. However, it is not clear on how much problem this can cause for Apple. The company is currently selling only the higher proportion of the older iPhone models. Apple is also suffering in its thriving service business for revenue and profit growth.
Overall, it is expected that the iPhone ASP (average selling price) will rise during this quarter according to most of the predictions which means that the company has to sell fewer iPhone phones to make the same amount of money. Meanwhile the suppliers are mokre exposed to this kind of unpredictability. One of the anonymous supplier talked to a leading daily and said, “Growth fixes a lot of sins. When it slows, rocks start to show up in the bottom of the ocean. Doing business with Apple is very risky as it often reverses what it has promised”.
More reports have said that the orders for the iPhone XR were reduced by up to a third. The good news was that the iPhone X went on to be the most popular phone among the gadget enthusiasts across the globe. The initial forecasts for the iPhone X was very optimistic but its cut the orders by 20 million units. At the same time Apple has stopped reporting device unit sales which used to be a part of its financial quarterly releases.
Photo Credits: Macworld