“Foxconn is reportedly planning to cut operational costs by 20 billion yuan ($2.9 billion) following a ‘very difficult and competitive year,'” Charlie Osborne reports for ZDNet. “According to an internal memo seen by Bloomberg, roughly 10 percent of non-technical staff will be eliminated from the payroll in 2019.”
“Foxconn is Apple’s largest and most well-known assembler and iPhone manufacturer,” Osborne reports. “As Foxconn’s memo specifically names the iPhone unit as an area which requires a reduction in expenses over the next year, it is possible that the reported slow-down in demand — potentially due to the stiff price tags of high-end models and the competitive mobile device landscape — has also cut into Foxconn’s predictions of future profit.”
Read more in the full article here.
MacDailyNews Take: Once again, a reminder:
Apple will only bring in revenue of some $30 billion per month for the next three months. That’s a billion per day for 90 some odd days. What a financial horror!
The so-called “analysts” scream, “SELL, SELL, SELL!!!” (So they can buy low). Well, so can Apple as they execute their massive buyback program. And so can smart investors. — MacDailyNews, November 19, 2018
AAPL is like a buoy. Quick, it’s back on the surface! You there, analyst, and you, too, swim down and tug on the chain! Drag it under… lower, lower… Good! Now, quick, everybody jump on, and we’ll take a ride back up to the top again! — MacDailyNews, January 9, 2012
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At the most basic level, it’s extremely simple: Pump, then dump. Foment, then buy. Rinse, lather, repeat as the SEC sleeps. — MacDailyNews, April 26, 2012
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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
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If there actually is an issue with iPhone XR sales — and the jury is still way out on that one — that could be a good thing for Apple as it could mean that when spending over $750 on an iPhone, more people than ever say to themselves, “Well, I might as well get the very best one available,” and buy the iPhone Xs Max over iPhone XR. This would positively impact Apple’s iPhone ASP, of course. — MacDailyNews, November 9, 2018
SEE ALSO:
Apple is having its worst month since the financial crisis, but the long-term trend appears intact – November 20, 2018
Apple analysts have a long history of misreading weak iPhone demand based on supplier rumors – November 19, 2018
Poor news curation at Bloomberg, CNBC, Reuters created misleading iPhone supply chain panic – November 19, 2018
WSJ: Apple slashes production orders for all three new iPhone models – November 19, 2018
Misreading Apple’s supply chain and iPhone XR demand – November 15, 2018
Apple: Ignore the noise – November 14, 2018
Dialog Semi says not seeing hit to demand from Apple – November 14, 2018
Don’t panic about iPhone sales just yet – November 14, 2018
Apple stock: This is not a repeat of 2015-16 – November 14, 2018
iPhone XR production cuts not due to soft demand – analyst – November 10, 2018
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
Uh, yeah, about those iPhone X ‘concerns’ from analysts: Never mind – May 1, 2018
Apple beats Street with best Q2 ever – May 1, 2018
Apple’s iPhone X isn’t selling well – or is it? – April 21, 2018
Apple’s iPhone X to be discontinued this year, analyst claims – April 20, 2018
Morgan Stanley: Apple stock may fall on ‘materially’ weaker iPhone sales – April 20, 2018
Apple’s iPhone X made 5 times the profit of 600 Android OEMs combined – April 18, 2018
Apple’s iPhone captured 86% of global handset profits in Q417; iPhone X alone took 35% of global handset profits – April 17, 2018
Bernstein: Ams AG is biggest winner in Apple’s TrueDepth Camera system – April 10, 2018
Apple’s iPhone X is the UK’s most popular smartphone – April 9, 2018
Apple’s iPhone X sales continue to disappoint, some analysts say – March 22, 2018
Ignore the iPhone X naysayers – March 10, 2018
Will the naysayers admit they were wrong about Apple’s iPhone X? – February 5, 2018
Do iPhone X sales spell trouble for Apple? – January 30, 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
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
How does the media always get these “internal memos”, anyway? Is security really that lax in these companies and no one cares about sending them to the media? Or is it just “Fake News” again…
I wonder…
Inside every company are people willing to share the inside story. Not always a bad thing, either.
…..”following a ‘very difficult and competitive year,” ..
Note ‘following’.. didnt apple break records quarter after quarter last year
And isnt Apple also using Pegatron, what about them ?
Interesting timing. Foxconn just received $2.85 billion in corporate welfare from the Wisconsin Economic Development Corporation, not counting $764 million in infrastructure perks that local taxpayers in Racine County will be paying for, or accounting for the free natural resources that Foxconn was given access to carte blanche.
Yes, Foxconn will spend money to build an enormous new plant, sustaining construction work for a short time. But when all is said and done, the deal soaks the Wisconsin taxpayer ~$230k per guaranteed job that Foxconn promises to create — but the average salary of those jobs per the agreement will be $53k. The construction jobs don’t even come close to filling the gap. Soon to be ex-governor Walker claimed that a magic multiplier effect will create an exciting renaissance but the more accurate reality is that he isn’t very strong at maths. Where else in the world does a median income worker create 3-4x the economic activity than he earns? Do you spend multiple times more than you make?
Cue the usual partisans on MDN who will blame the other party for the gross state fiscal mismanagement. They will ignore how their corrupt party is happy to screw taxpayers to enable corporate welfare. Their developer and real estate buddies will make out just fine, their party will be funded for the next gerrymandered election cycle and that’s all that really matters to them.
Tax credits right? Can’t get a credit, unless you have tax liability, first.
As for the magic multiplier, presumably he’s referring to other supply chain companies building a factory near the Foxconn factory.
Ultimately, it’s the State who gives away these benefits, just like NY and Washington did for Amazon. It’s nuts. They need to stop.
I wonder..
Your analysis is idiotic. The Foxconn deal has already caused Wisconsin economic hardship. and the fucked up republican governor was just voted out for this swindle.
You’re a fucking idiot for suggesting otherwise.
There we go again.. Mikey the bigoted cry baby ……
And you were the one ( wrongfully) complaining about others hijacking threads with political rant. .. man you are a joke…. and so blind to what you are … unbelievable..
You take hypocrisy to unheard of levels ..
Grow up little boy .
Rightwingers proudly call such Corporate Socialism free enterprise and then donate to anyone running against Sanders’s egalitarian socialist policies intended to help the poor and dispossessed have a better life.
Very utopian indeed…..
and naive.. have you ever directly experienced a system which proclaimed to be what you are so deluded about and
advocate .
We live in this universe . U and alike are armchair socialists without a clue for what u advocate so dogmaticaly .
A flat society is a dead society… that is just nature.
But libs are above nature arent they. … sigh.
Norway, Sweden, Denmark and others have a much better quality of life in general, better life expectancy, better health expectancy, much lower infant death rates, enormously less gun deaths and many more positive factors. The US is WAY down on the list of quality places to live.
No doubt they have some of the best rated qualities of life there.
But Nordic countries are not based on a flat societiy…
I have many friends who live there….. they pay high taxes but they dont operate on handouts.
Dingler dongs the dangnabbit crazy button again
And this is all of Apple’s fault. Apple’s supposedly failing iPhone business is ruining the entire U.S. economy and collapsing the entire stock market. Wow!
So, Foxconn is cutting $3B in costs and all the news media can only point to Apple when the entire smartphone market is completely saturated. How is that Apple’s fault? They can thank all those other Chinese smartphone manufacturers for selling less expensive smartphones to the masses. Apple has lost about $220B in value in less than a month and someone is crying about Foxconn losing $3B. Boohoo. It’s always Apple’s fault when some supplier loses money.