Apple Cuts Production Orders for All 3 New iPhone Models

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"It is too early to assume that the new iPhones aren't selling well, especially since the supply chain-based sources said the exact same thing previous year about the iPhone X, and were proven incredibly wrong when Apple released sales numbers", says Avi Greengart, consumers director at GlobalData.

The report notes that Apple's iPhone XR appears to be the worst hit with the company cutting production plan by up to a third of the almost 70 million units. In addition, the iPhone has been the smartphone with the highest sales figures per model for years anyway and it will remain that way - reduced production or not.

In the bearish note, Rod Hall and his analyst team say that it seems like Apple "miscalculated on the price/feature balance for the [iPhone] XR" and that Apple's less-expensive premium phone may have missed the mark.


"Apple's success with iPhone X demand this summer and then a relatively healthy start to the XS cycle this fall suggested to us that pricing power was still intact".

Goldman forecasts Apple's calendar year 2019 EPS at $13.40, roughly in line with the company's last three years next-twelve-month average.

Apple has cut production orders on its three latest models of the iPhone, which haven't sold as quickly as the company had originally expected, the Wall Street Journal reports, citing unnamed sources.


The company used the increasing average iPhone sale price to justify a significant reporting. The last quarter of the year is often the best performing quarter for Apple with more than 70 million units sold. Shares of Apple have dropped more than 20 percent from an early-October record, pushing the Dow component into bear-market territory.

Vaughan Nelson Investment Management L.P. lowered its holdings in shares of Apple Inc.

Apple did not immediately respond to a request for comment.


Interestingly, Apple no longer plans to reveal unit sales for their devices in their quarterly reports.

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