iPhone production slows as Apple cuts earnings forecast

iPhone XS
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Rumor has it that Apple is scaling back its production plans for its most recent fleet of handsets – the iPhone XS, iPhone XS Max, and iPhone XR – by around 10%.

According to a report by Nikkei (opens in new tab), the amended plan is due to slowing demand for smartphones – especially in China, whose weak economy was blamed by Apple for not meeting previous sales targets.

On January 2nd, Tim Cook released a letter to investors (opens in new tab), claiming Apple had also seen "fewer iPhone upgrades" than initially expected.

As ever, Apple has jacked up iPhone prices higher than ever with the new models, at least partially to ensure ongoing returns in a slowing market. But if even 'affordable' iPhone models like the XR are retailing for £749 / $749 (AU$1,229), with flagship models pushing into four-figure sums, Apple may be testing the determination of its fan base a bit too hard.

An Apple a day

For all the doom and gloom, Apple is still a trillion-dollar company with an incredible hold on today's consumer market. A small slump in iPhone sales aside, the company has seen good sales of iPads, Apple Watch, AirPods, and Macbooks – with the diversity of products ensuring protection against unexpected dips in revenue.

Apple has also been looking to the future with a number of new partnerships with TV manufacturers announced at this year's CES 2019 tech expo: check out the link just below for what this could mean for Apple.

Via Engadget (opens in new tab)

Henry is a freelance technology journalist. Before going freelance, he spent more than three years at TechRadar reporting on TVs, projectors and smart speakers as the website's Home Cinema Editor – and has been interviewed live on both BBC World News and Channel News Asia, discussing the future of transport and 4K resolution televisions respectively. As a graduate of English Literature and persistent theatre enthusiast, he'll usually be found forcing Shakespeare puns into his technology articles, which he thinks is what the Bard would have wanted. Bylines also include Edge, T3, and Little White Lies.