2018 hasn’t been a great year for Apple and things aren’t about to get a whole lot better by the time 2019 arrives. According to a new report, the company is going to order yet another iPhone production cut during the March quarter of next year.
It’s not a small cut either; Rosenblatt analyst Jun Zhang (via Seeking Alpha) pegs it at nearly 4 million units. The iPhone XR will apparently be the worst affected at 2.5 million units. The iPhone XS is supposedly not far behind at 1 million. The iPhone XS Max might be light of 500000 units after the restructuring takes place.
China Picks Huawei Over Apple
Making things worse, Chinese companies are reportedly subsidizing employees who buy Huawei devices instead of iPhones. Why? Because Huawei’s CFO Meng Wanzhou got arrested in Canada recently in relation to a US crime. Apple is already facing the consequences of this – a number of iPhones recently got banned in China over two Qualcomm patents.
China has a history of promoting its own companies over foreign ones, so it would make sense for iPhones sales to fall in that region. Even the German market might see a similar drop in iPhone sales since Qualcomm managed to get the iPhone 7 and iPhone 8 banned there.
Even the US, normally Apple’s stronghold, is seeing poor sales. It seems folks just don’t want to spend $749/$999/$1099 on the iPhone XR/XS/XS Max, respectively. The brand has gone as far as to promote trade-in deals for the new iPhones and increase the value of old iPhones so people feel encouraged to upgrade.
Apple hasn’t officially confirmed these cuts, but plenty of its suppliers have. They’ve been forced to reduce production lines and announce a drop in profits. Here’s hoping the iPhone maker learns from this experience and drops prices next year.