Apple suppliers have taken a hit in revenue during early 2019 as a result of falling iPhone shipments. Analysts don’t expect a turnaround anytime soon with Apple’s smartphone still struggling to catch a break in China.
Apple has joined forces with Alipay in an effort to boost iPhone sales in China.
iPhone fans can now bag one of the company’s latest handsets with up to two years of interest-free finance. The loan allows customers to swap the costly upfront fee for much more affordable monthly payments. It’s available on purchases of 4,000 yuan (approx. $595) or more.
Foxconn, Apple’s largest manufacturing partner, has cut 50,000 workers ahead of schedule as a result of weak iPhone demand.
The first cuts came last October, months before Foxconn typically scales back its workforce in preparation for slow season, according to a source familiar with the move. It is believed that Foxconn isn’t the only Apple supplier making cuts, either.
Apple reportedly replaced a whopping 11 million iPhone batteries last year — 10 times as many as anticipated.
Apple CEO Tim Cook has already cited this as one of the reasons why new iPhone sales are slowing. It is believed the company expected to perform between 1 and 2 million replacements under its heavily-discounted $29 program.
Apple’s best-selling smartphone last November was, perhaps unsurprisingly, its most affordable model. The iPhone XR outsold the iPhone XS and the larger iPhone XS Max, according to new data — but overall iPhone sales saw a significant decline.
It turns out Apple isn’t the only smartphone maker that’s suffering from falling sales in China. Samsung, one of the iPhone’s biggest rivals, is also expected to follow Apple in confirming lower than anticipated revenue for the fourth quarter of 2018.
The South Korean company’s warning, which will reportedly come on Tuesday, will reveal a 12 percent fall in year-on-year operating profit for the three-month period. Revenue is also expected to drop 5 percent.