Apple is reducing the production of iPhones this quarter by ten percent, following reports of waning demand for the company’s signature product.
According to Reuters, Apple “slashed its quarterly sales forecast last week,” and “reduced planned production for its three new iPhone models by about 10 percent for the January-March quarter.”
“Apple asked its suppliers late last month to produce fewer-than-planned units of its XS, XS Max and XR models,” Reuters elaborated.
On top of the decreasing demand for iPhones in China, Reuters added that Western consumers and analysts think “the new iPhones are overpriced.”
On Monday, CNN Business claimed the interest in Apple’s iPhone has been stalling, with the value of the company dropping over the past few months to suit.
“The iPhone is by far Apple’s most important product, accounting for nearly two-thirds of the company’s sales last year. But iPhone sales have flatlined since 2015, frustrating the millions of investors in one of the market’s most widely held stocks,” CNN Business reported. “In November, the company rattled investors when it decided to stop breaking out iPhone sales — not exactly a sign of strength. On Wednesday, Apple (AAPL) warned that it would miss its sales target for the previous quarter, mainly because of weak iPhone demand in China.”
CNN Business also noted that the company’s stock “has fallen 36% since October 3,” and last week, it fell “behind Amazon (AMZN), Microsoft (MSFT) and Alphabet (GOOGL) in market value,” losing “$500 billion in market value over the past three months.”
“Tim Cook has extracted every last penny out of the iPhone that Steve Jobs created, but it’s time for Apple to come up with a new plan,” CNN Business declared.
In a Tuesday interview on CNBC’s Mad Money, however, Apple CEO Tim Cook assured viewers that customer satisfaction is more important to the company than iPhone sales.
“I want the customer to be happy… We work for them,” Cook claimed. “We think about the long term… And so when I look at the long-term health of the company, it has never been better.”