Apple cuts production of older iPhones with new models ‘on track’


iPhone xs xr compared
Sales of the iPhone XR are said to be falling fastest.
Photo: Apple

Apple has cut production of older iPhone models for the third quarter of 2019, according to a new report from analysts.

The move suggests that demand for the company’s more affordable devices has started falling. Meanwhile, manufacturing is on track for Apple’s next-generation handsets coming this fall.

The latest iPhone lineup hasn’t exactly been a spectacular success for Apple. An ongoing trade war between the U.S. and China, coupled with rising prices, has caused demand to fall.

It’s not completely clear if this is the reason why Apple’s inventory of iPhone XS and iPhone XS Max units increased during the second quarter, according to Rosenblatt analysts.

Either way, Apple is now cutting production of older units ahead of a big refresh this fall.

iPhone XR sales fall

The analysts have told Apple investors that “older iPhone model production” has been reduced for the third quarter of this year. However, they don’t specify which handsets are affected.

They do insist that sales of the iPhone XR are falling “due to normal Q2 seasonality.” In other words, fewer people are adopting the device after demand peaked over the holidays.

Rosenblatt also warns that Apple will continue to lose market share in China this year. Like Apple itself, it blames this on “increasing tension between the U.S. and China.”

2019 iPhone production on track

It’s not all bad news, though. The analysts are confident that production of the next-generation iPhone lineup is “on track.” That should mean new devices will arrive this fall as expected.

It’s still not completely clear what Apple will do to fight falling iPhone demand. Earlier reports have indicated that we could see price cuts across the entire lineup this year.

Via: AppleInsider


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