The rumors and speculation about the sales of the new iPhones that we discussed last week may have (again) taken shape: Apple would have recently reduced the production of the XS, XS Max and XR iPhones, according to data from the company’s suppliers.
Apparently, Apple “did not correctly forecast the demand for the three new models of the gadget amid the slowdown in the smartphone market and the low demand by Chinese consumers ”, as disclosed by the Wall Street Journal.
According to the newspaper, the choice for offering more models and the low euphoria of the market created “turbulence in the production chain”. In this sense, some companies that supply parts to Apple claimed that the company’s decisions hindered the production of components in line with the real scenario of adoption of the new devices.
For executives and suppliers, the decision to reduce the production of iPhones is, of course, frustrating. According to data obtained by the WSJ, the iPhone XR production cut forecast is greater than that for the XS and XS Max iPhones, with Apple reducing the model’s manufacturing plans by up to a third of the 70 million units ordered between September this year and February 2019 .
First, changes in production are not a recent phenomenon, much less surprising, especially in the case of Apple. Second, as we already know, year after year sales of iPhones are surpassing more and more, as well as Apple’s profit with its gadget flagship and the average sales value (average selling price, or ASP) of the product.
Last year, however, Apple announced the first iPhone to score $ 1,000 on its price tag, generating, in theory, some dissatisfaction with the iPhone X, which did not end in practice. Apparently, the new models have acquired this “fame” from the previous model and the principle of the presumption of innocence has never made so much sense for this new generation of Apple devices.
If this discussion will be repeated with each Apple release, especially with regard to iPhones, it is likely that it will. As we mentioned, sales of the new models may be lower, but until Apple confirms this, there is no way to say anything based on the two months that these devices are on sale – after all, it is also natural that the lines of production slow down after the boom initial sales.