Apple reportedly cuts iPhone production by 10 percent for first quarter

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The Nikkei writes: "Apple is cutting its current production plan for new iPhones by about 10% for the next three months in a sign that the US smartphone maker is expecting a further hit this year, just a week after its market-shaking revelation that it would miss revenue forecasts at the end of 2018".

China is cited as the reason for weakening iPhone sales as that country's economy slows, which has been impacted by a trade war with the United States.

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Apple's newest smartphone, the iPhone XR made a whole lot of buzz a year ago when it launched because of its different design and looks along with the lower than the usual price tag. The request was made before Apple cut its forecast last week. Finally, BMO Capital Markets upgraded shares of Apple to a "market perform" rating and set a $199.00 price objective on the stock in a research note on Thursday, September 13th. Speaking to CNBC Tuesday, Cook said the company was planning to announce "new services" later this year, without elaborating on what those might be. That appears to tally with estimates from research firm Canalys, which has forecast smartphone shipments in China to fall by 3 percent this year, according to Reuters. Under the revised plan, overall planned production volume of both old and new iPhones will be reduced to about 40-43 million units for the January-March quarter from an earlier projection of 47-48 million units.

The Nikkei said Apple could not be reached for comment on the information.

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Apple's iPhone suppliers include Taiwanese assemblers Hon Hai Precision Industry Co Ltd (Foxconn) (2317.TW) and Pegatron Corp (4938.TW). The company offers iPhone, a line of smartphones; iPad, a line of multi-purpose tablets; and Mac, a line of desktop and portable personal computers, as well as iOS, macOS, watchOS, and tvOS operating systems.

It's not all that long since Apple celebrated becoming a trillion dollar company, but then just last week it issued a profit warning and its value plummeted.

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Nikkei said Apple is likely preparing for a 20 percent decline in second-quarter iPhone sales from the same period in 2018, when it sold 52.21 million units.