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Wed Jan 9, 2019, 08:45 AM

Apples Slashes iPhone Production For Second Time In 2 Months

In the latest batch of bad news for Apple and its suppliers, Nikkei reported late Tuesday that, for the second time in two months, the world's formerly biggest company has cut production on its newest batch of smartphones (which it unveiled during a widely panned product launch back in September) as slowing demand for iPhones in China continues to take a toll on Apple's sales.

The news came one week after Apple triggered a broad-based market rout complete with FX flash crashes, when it lowered its quarterly revenue guidance for the first time in 16 years.

Apple has cut its production plan for the new iPhones by roughly 10% over the next three months, in the latest sign that the US smartphone maker is expecting an even bigger slowdown than previously believed. The request was made before Apple lowered its revenue guidance.

A source cited by Nikkei said that the plan called for an overall cut in planned production volume of both old and new iPhones to about 40 million to 43 million units for the January-March quarter from an earlier projection of 47 million to 48 million units. This drop is equivalent to a yoy contraction of more than 20% from the 52.21 million units Apple sold between January and March 2018. To be sure, the size of the actual decline could diverge somewhat as deviations in inventories and demand are factored in.

https://www.zerohedge.com/news/2019-01-09/apples-slashes-iphone-production-2nd-time-2-months

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Response to Troll2 (Original post)

Wed Jan 9, 2019, 09:11 AM

1. They would be better served to slash their phone prices as well

Pretty sure they figured out, badly, that the consumer does not want a $1000.00+ phone.

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Response to Butchie_T (Reply #1)

Wed Jan 9, 2019, 09:36 AM

2. Particularly one that is sub-functional compared to its competitors

 

My Samsung S7 (I have a 9 now) had retinal scan that worked perfectly. My Windows Surface is 2 years old and it had perfect face recognition.

And of course Google Maps has worked for 10 years and I can expand my memory up to 512 GB S10 will have 1 TB).

The Apple iPhone is a Bradley GT. Pretty looks but a VW Bug frame.

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Response to Butchie_T (Reply #1)

Wed Jan 9, 2019, 09:48 AM

3. Apple can't cut prices without destroying their market position as a luxury fashion accessory

The primary function of an iPhone is to confer status on the iPhone user.

Of course, this doesn't work in China anymore because there using an iPhone now says "running-dog lackey of the capitalist imperialists".

Also, huge, expensive headquarters buildings are usually markers of the peak of corporate performance:
https://www.cbsnews.com/video/apples-massive-glitzy-new-headquarters/

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Response to Troll2 (Reply #3)

Wed Jan 9, 2019, 10:50 AM

4. Luxury is the opposite of where a services company needs to be.

Their two strategies are clashing. Tim Cook is an idiot.

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Response to Let it go (Reply #4)

Wed Jan 9, 2019, 12:42 PM

5. The Steve Jobs reality distortion field started fading after Tim Cook took over.

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