Apple ordered its suppliers to cut down the number of new iPhone model units coming off their production lines right before Tim Cook published his letter to the Apple investors at the beginning of the month.
As if this didn't make the new year troubling enough for Apple, the company also had to remove the iPhone 7 and the iPhone 8 out of German stores after Qualcomm posted $1.5B (€1.34B) in security bonds to enforce a court decision which imposed a preliminary injunction on the two phone models. And it applies to all of them, the iPhone XS, XS Max, and XR.
Sources say that having initially projected production numbers of around 47 to 48 million units, Apple is now expecting to produce somewhere between 40 and 43 million iPhones.
Apple shares plunged over 9 percent earlier this month as Wall Street was rattled by the Silicon Valley giant's shock revenue warning.
The report comes after chip suppliers Samsung Electronics and Skyworks Solutions flagged weak first-quarter chip demand for smartphones. Pegatron declined to comment on the report when contacted by Reuters, while Foxconn did not immediately reply to a request for comment. A small slump in iPhone sales aside, the company has seen good sales of iPads, Apple Watch, AirPods, and Macbooks - with the diversity of products ensuring protection against unexpected dips in revenue.
As Chinese demand has faltered, Apple has increased focus on India, which recently overtook the United States as the world's second-largest smartphone market. Cupertino probably decided on that initial goal based on previous sales, seeing as it sold 52.21 million units within the same period a year ago.