iPhone XR production cuts not due to soft demand – analyst

“Earlier this week, a somewhat sketchy report surfaced claiming that Apple told its manufacturing partners to reduce iPhone XR production due to lower than anticipated demand,” Yoni Heisler reports for BGR. “Even more alarming, the report claimed that overall production might drop by as much as 25%.”

“The claim that iPhone XR demand is exceedingly below expectations runs somewhat counter to a previous report from reputed analyst Ming-Chi Kuo who just recently raised his iPhone XR sales estimate for the December quarter,” Heisler reports. “Further, it seems odd that Apple would drastically cut production ahead of the busy holiday shopping season. So just what, exactly, is going on?”

“Well as it turns out, Apple may have indeed ordered a rollback in production, but not for reasons pertaining to demand,” Heisler reports. “According to a research note from analyst Jun Zhang (originally brought to light by Philip Elmer-DeWitt’s Apple 3.0), there may have been some quality control issues involving the iPhone XR’s printed circuit boards that led to a reduction in production output.”

Read more in the full article here.

MacDailyNews Take: Don’t hate the manipulators, profit from them.

Even if a particular data point were factual it would be impossible to accurately interpret the data point as to what it meant for our overall business… There is just an inordinate[ly] long list of things that would make any single data point not a great proxy for what’s going on. Apple CEO Tim Cook, January 23, 2013

Apple’s Asian suppliers fall on report of canceled iPhone XR production boost – November 6, 2018
Nikkei claims iPhone XR production cuts, Apple stock drops over 3% – November 5, 2018
Apple’s revolutionary iPhone X was the world’s best selling smartphone in Q118 – June 14, 2018
Nikkei again claims ‘weak demand’ for iPhone X despite much evidence to the contrary – February 20, 2018
iPhone X drives smartphone revenue dominance; Apple made more money in Q417 than the rest of the smartphone makers combined – February 16, 2018
Apple iPhone took more than half of worldwide smartphone revenue share in Q417, a new record – February 15, 2018
Apple supplier says report of iPhone X production cuts was overstated – January 30, 2018
Another January, another misleading iPhone supply cuts story from Nikkei – January 29, 2018
Apple stock drops after Nikkei report of iPhone X production cut – January 29, 2018
Canalys: Apple shipped 29 million iPhone X units in Q4 2017; world’s best-selling smartphone over the holiday season – January 23, 2018
Reports of Apple cutting iPhone X orders make no sense – January 2, 2018
Apple stock tumbles on one poorly-sourced report of low iPhone X demand – December 26, 2017
Apple and suppliers shares drop on report of weak iPhone X demand – December 26, 2017
Nikkei: Apple to decrease iPhone production 10% in first quarter of 2017 – December 30, 2016
Nikkei proclaims ‘iPhone 7’ Dead On Arrival; bemoans Apple’s ‘lack of innovation’ – May 12, 2016
Japan’s Nikkei, The Wall Street Journal blow it, get iPhone demand story all wrong – January 16, 2013
Did Apple reduce 4-inch Retina display orders due to improving yields? – January 15, 2013
Analysts: iPhone 5 demand ‘robust;’ ignore the non-news noise – January 15, 2013
Apple iPhone suppliers decline on report orders cut by 50% – January 15, 2013
Apple swoon erases $17 billion from stock market – January 14, 2013
Apple iPhone 5 production cut signaling a new product release? – January 14, 2013
Apple drops to 11-month low on old reports of component cuts – January 14, 2013
The strange math of Apple’s alleged massive iPhone 5 component cuts – January 14, 2013
UBS analysts: Apple iPhone component order reduction ‘old news’ – January 14, 2013
Apple pulls down U.S. futures – January 14, 2013
Apple shares drop below $500 after reported cuts in iPhone 5 parts orders – January 14, 2013

[Thanks to MacDailyNews Readers “Fred Mertz” and “Edward W.” for the heads up.]


  1. More interestingly, CIRP recently reported that there are 181 million active iPhones in the USA. This means that Apple has an amazing 65% market share in the USA in terms of active smartphone user base. Add in Apple’s dominance in tablets as well and iOS is gargantuan.

    How do we work this out? Simple. NewZoo reports that there were 278m active smartphones in the USA at Sept 2018, so 181m active iPhones means Apple has a gob-smacking 65% market share compared to Android on at most 35%.

    This figure interestingly enough closely matches Statcounter’s figure of 64% web share for the iPhone and 69% for iOS.

    With many other major countries like the UK, Japan, Australia sporting similar quarterly unit sales market share as the USA we can use this correlation to estimate the iPhone and iOS active use base in other major Apple markets around the world.

    Statcounter reports that Apple’s iOS web share is at 80% in Japan with Android on 20%.

    In Australia, iOS is at 75.7% share with Android on 24.3%.

    In the UK, iOS is at 69.4% with Android on 40%.

    Quite remarkable for one manufacturer (who also happens to be by far the most expensive!) and far higher than the misleading 15% quarterly sale marketshare figure that is usually trumped around the world.

    This all helps to illustrate how Apple’s 1.2 Billion active iOS devices are distributed worldwide compared to Google on only 2 billion active Android device worldwide (with AOSP only accounting for another 30%) and shows that uninformed reports of changes in the supply chain are all just so much pointless blather.

    1. As has been said many times before … Apple goes for the users with disposable income hence the focus on some major markets. Android is predominantly for the lower income group who otherwise wouldn’t be able to afford an Apple smartphone.

      It’s pretty obvious which strategy will make more profits… but that wouldn’t fit into the tech journalists and ANALysts’ agenda of “Apple is doomed” hence the focus on market share.

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