Apple Stock Is Falling on New Report of iPhone Production Cuts

The Journal cites the lower than anticipated demand for the new models and an overall shrinking smartphone market that has made it more hard for Apple to anticipate how many units it will need for the holiday season.

Citing unnamed sources, the article said Apple last month lopped a third off the 70 million units it had ordered for its new iPhone XR model between September and February - and then it reduced its orders again. Another reason that is being associated with low demand is the increase in the number of models that the company is offering in the market.

Lumentum Holdings Inc (LITE.O), AMS AG (AMS.S), companies which supply Apple with software needed for its FaceID technology, also lowered their forecasts. Apple's share price was down 3.6 percent Monday.

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.

Many iPhone suppliers have cut their quarterly profit estimates after a large customer, which is nearly certainly Apple, reduced its orders. The iPhone XS, XS Max and XR, unveiled in September, didn't sell as well right off the bat as analysts expected, and Apple cast doubt about sales volumes for the current quarter as well.

The brokerage forecast a 10 cent headwind to Micron and 15 cent headwind to Western Digital in the fourth quarter of 2018 and the first quarter of 2019 on lower iPhone builds.

The rest of the so-called FAANG stocks - Facebook Inc, Amazon.com Inc, Netflix Inc and Alphabet Inc - shed between 3 per cent and 1.3 per cent. And Foxconn, a fourth major Apple supplier, reportedly cut overtime hours.

Tekashi 6ix9ine Arrested AGAIN On Racketeering Charges After Federal Investigation!
INDvsAUS: Ready to change fortunes this time, roars Rohit Sharma