This past quarter, Apple’s iPhone sales dropped by more than 20%. This fall in demand is likely due to several factors, including the growing popularity of Android-based smartphones and increased competition from Chinese companies. According to The Wall Street Journal, Apple cut its production of i Phones in half in order to make up for the shortfall in demand.
Although this news may cause some concern, it’s important to remember that the iPhone is still the most popular smartphone on the market. So while Apple may be seeing a dip in sales, it doesn’t mean that they’re going out of business they just need to adjust their production schedule accordingly.
Apple’s iPhone Production Cut Amid Fall In Demand
Apple’s iPhone production cut is causing a dip in demand, with analysts predicting that the company will report a $30 $40 billion loss in its upcoming fiscal year. The fall in demand is due to a number of factors, including growing competition from Android and other smartphone platforms, as well as people choosing to buy cheaper models instead. Apple has been struggling to keep up with the demand for its products, with shipments falling by 16 percent in the third quarter of 2017.
Why Apple’s iPhone Production Cut Occurred
Apple’s iPhone production cut occurred due to an overall fall in demand for its devices. In the third quarter of 2017, iPhone sales were down by around 10% from the same period last year. This was despite the launch of several new models, including the iPhone 8 and 8 Plus, which had been expected to boost sales. Despite this decline, Apple is still expected to report a net profit of $11.5 billion for the period. The company has attributed its falling sales to increased competition from other smartphone manufacturers as well as a slowdown in China’s growth.
What This Means for iPhone Owners
Apple’s iPhone production cut amid fall in demand
By Christina Pennington, Industry Analyst | October 3, 2018
Apple announced on September 12th that it would be cutting iPhone production by 20% due to a slowdown in demand. This comes as no surprise to many industry watchers, as the iPhone has been experiencing declining sales for some time now.
What this means for iPhone owners depends on what type of contract they have with Apple. If you have an installment plan or pay for your phone upfront, then your contract will still require you to make monthly payments even if your phone is not being made. If you own an iPhone outright, then your phone may not be able to support future updates or features and may become outdated sooner than anticipated.
While it is unclear how much of an impact this decision will have on the overall market, it is clear that there is a problem with demand for i Phones right now. Manufacturers like Aweigh and Samsung are already starting to take advantage of this situation by releasing new models of their smartphones that are more affordable and aimed at lower end consumers. It will be interesting to see how this plays out over the next few years.
Apple Produces Less i Phones in September
Apple produced less i Phones in September due to a fall in demand, the company said on Friday. In its earnings release, Apple said it sold 47 million i Phones in September, down from 56 million in August and 61 million in September 2017. The company’s chief financial officer Luca Maestro said that “demand appears to have been weaker than expected” in the third quarter.
Analysts had predicted that iPhone sales would continue to grow this year as the cost of other devices continues to drop but the fact that Apple is producing less i Phones shows that consumers are not spending as much on their phones as they once did. This could be due to a number of factors such as a slowdown in China or an increase in competition from Samsung and other brands.
Conclusion
Apple’s iPhone production cut is just the latest sign that the smartphone market is slowing down. In China, Samsung announced that it would slash its production by 10% due to falling demand for smartphones. The global market for smartphones is estimated to grow at a rate of only 1.5% this year, according to research firm Gardner. This slowdown in demand has led many companies including Apple and Samsung to make cuts in their employee numbers or reduce their product lines.