Weak iPhone XR demand and component issues reportedly lead to second production cut
Apple may have made a boatload of money in the July - September 2018 quarter, managing to considerably boost its share of US smartphone sales before the iPhone XR was even released, but it’s not all rosy in the Cupertino camp.If it wasn't already obvious enough, the worldwide leader in smartphone profits is bracing itself for a potential drop in overall unit shipments this year compared to the previous holiday season.
While the iPhone XS and XS Max could now exceed certain internal and external expectations, the family’s ASP (average selling price) might be held back by steady iPhone 8 demand and an unforeseen resurgence in iPhone X popularity.
Specifically, Rosenblatt Securities Managing Director and top research analyst Jun Zhang foresees an iPhone X production ramp-up of between 1 and 2 million units for the holidays. But iPhone XR numbers could drop by as much as 4 or 5 million units in addition to an already drastic first round of order cuts.
Then again, it’s important to highlight this second production adjustment is probably caused by a combination of factors. Apart from relatively weak demand, a very specific quality issue with a paramount component may be prompting the additional reduction.
Skyworks, a US-based supplier of semiconductors, reportedly failed to meet Apple’s famously stringent quality standards for printed circuit boards (PCBs), which made the smartphone manufacturer “quickly drop” its orders. Still, iPhone XR demand is at least partly to blame for these repeated manufacturing cuts.
Adrian, a mobile technology enthusiast since the Nokia 3310 era, has been a dynamic presence in the tech journalism field, contributing to Android Authority, Digital Trends, and Pocketnow before joining PhoneArena in 2018. His expertise spans across various platforms, with a particular fondness for the diversity of the Android ecosystem. Despite the challenges of balancing full-time parenthood with his work, Adrian's passion for tech trends, running, and movies keeps him energized. His commitment to mid-range smartphones has led to an eclectic collection of devices, saved from personal bankruptcy by his preference for 'adequate' over 'overpriced'.
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