Weak demand for the flagship model of the iPhone has meant that Apple was forced again to reduce the volume of their production, for the second time since their release in September. It is reported by DigiTimes, citing sources in the supply chain. According to sources, Apple has reduced orders for the iPhone XS, but iPhone and XR, which, as suggested earlier, have become the best selling model among the flagship devices of the company.
Despite the approaching holidays, which are traditionally the time of increased demand for electronics, Apple is doing far better, says DigiTimes. This in turn has a negative impact not only on the company itself, which last month lost more than 20% of their capitalization, but also its partners, are forced to incur losses and even reduce staff.
What it led to
It did so contracts Largan Precision and Technology Career, providing iPhone lenses for cameras and flexible printed circuit boards respectively. Given the huge volume of orders, which Apple has provided to its partners, forced layoffs of hundreds of employees because of the difficulties of the customer look quite natural consequence, is able to keep the company afloat and save him from bankruptcy.
A few weeks ago the analyst TF International Securities reported that Apple has decided to reduce the volume of production of the new iPhone is 25%. This is a substantial figure, which is a direct indication that consumers are not too keen flagship smartphone of the company. As the most likely causes of what is happening analyst called the retail price of the devices that most customers seemed excessively high.