Apple Tells Suppliers to Cut iPhone XR and XS Production by 10% for Next Three Months

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Apple is telling its suppliers to cut production on new iPhones by 10 percent over the course of the next three months, reports Nikkei.

Apple made the request of its suppliers late last month, asking them to produce fewer iPhones for the January-March quarter.


This is the second time that Apple has recently cut down on iPhone production, and Nikkei says Apple made the decision prior to issuing its guidance downgrade last week.

The production revision applies to all of Apple's new iPhone models, including the iPhone XS, XS Max, and XR. "The level of revision is different for each supplier and depends on the product mix they supply," an unnamed source told Nikkei.

A second source said that overall production volume of both new and old iPhones will be reduced by approximately 40 to 43 million units for the January-March quarter, down from an earlier projection of 47 to 48 million units.

Due to weak iPhone sales in China, the effects of the U.S.-China trade war, cheap battery replacements, and other factors, Apple cut its Q1 2019 revenue guidance to $84 billion, down from the $89 to $93 billion guidance issued in November, and with the production cuts, those issues may continue further into the year.

Apple CEO Tim Cook just today said, however, that reports suggesting the iPhone XR is a flop or selling poorly are "bologna," and that the device has been the best selling iPhone every day since it launched.

Related Roundups: iPhone XS, iPhone XR

Tag: nikkei.com

Buyer's Guide: iPhone XS (Neutral), iPhone XR (Buy Now)

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Apple CEO Tim Cook: 'Apple's Most Important Contribution to Mankind' Will Be in Health

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In an interview with Mad Money's Jim Cramer that aired tonight, Apple CEO Tim Cook discussed a wide range of topics, including Apple's future product plans, its health ambitions, wearable sales, and Siri improvements.

According to Cook, Apple's product pipeline has "never been better," a line that he often repeats. Apple is, in fact, working on new services that are coming this year, says Cook, though he declined to provide additional detail.

I believe it'll be material over time. I'm not gonna forecast precisely, the ramps and so forth. But they're things that we feel really great about, that we've been working on for multiple years.

We do know that Apple has a major TV-related service in the works, with more than a dozen original television shows and movies being produced right now.

Cook also said that health is a major focus of Apple, and that health may actually end up being "Apple's greatest contribution to mankind."

We are taking what has been with the institution and empowering the individual to manage their health. And we're just at the front end of this. But I do think, looking back, in the future, you will answer that question, Apple's most-important contribution to mankind has been in health.

Cook pointed towards Apple's work on Research Kit and CareKit for increasing research pools and improving bedside care, along with the Medical Records feature that allows users to access their medical records from multiple providers right on their iPhones.

Cook also mentioned the Apple Watch earlier in the interview, and said that he regularly reads emails from customers who tell him how the Apple Watch has changed their lives by motivating them to be more fit or finding heart problems through the new ECG feature that detects atrial fibrillation. "These are life-changing things," said Cook.

Apple's wearables business, which includes the Apple Watch and the AirPods, has already exceeded the iPod business by 50 percent at the iPod's peak, Cook went on to say.

And so already, exceeded it by 50 percent at its peak. At its peak. Also, if you take AirPods and the Watch separately, and you sort of back these up and align it to the launch date of iPod, as well, and, you know, where all of them have a comparable amount of time, you would find that each one, independently, is, like, four to six times ahead of where iPod was at a comparable period of time.

Cook was also asked about Siri, and whether Apple would throw more money at it if the company had "unlimited capital." In response, Cook said that Apple is "putting a ton of investment" in Siri.

There are more than 500 million devices using Siri in 21 languages and 30 countries. Cook says Apple wants Siri to be in every country, and that "quality is going up."

You know voice is a never-ending journey. We all speak a bit differently. I have a southern dialect, not as southern as I used to. But there's a lot of stuff to do there. But I'm highly confident in our ability to keep innovating like crazy there.

A complete transcript of Cook's Mad Money interview is available from CNBC. Cook also covered topics like Apple's earnings downgrade, iPhone XR sales, and its dispute with Qualcomm.

Tag: Tim Cook

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Apple's Legal Dispute With Qualcomm to Continue as Tim Cook Says Claims of Settlement Talks Are False

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In an interview today with Mad Money's Jim Cramer, Apple CEO Tim Cook shared some details about the company's ongoing legal battle with Qualcomm.

Despite rumors of settlement talks, Cook says that Apple has not been in any settlement discussions with Qualcomm since the third calendar quarter of last year. And in response to a question about whether Apple will cave and enter into a settlement with Qualcomm given the import bans in China and Germany, Cook said "no."


He then went on to blast Qualcomm for its pricing and licensing practices, calling them "illegal," and he commented on Qualcomm's tactic of spreading fake news, calling it "not how things should operate" and saying it "should be beneath companies."

The issues that we have with Qualcomm is that they have a policy of no license, no chips. This is, in our view, illegal. And so many regulators in many different countries agree with this. And then secondly, the obligation to offer their patent portfolio on a fair, reasonable, and nondiscriminatory basis. And they don't do that. They charge exorbitant prices. And they have a lot of different tactics they use to do that. And that's not just us saying that. I mean, you can see what's coming out of the FTC trial here in the United States.

Apple and Qualcomm have been involved in an increasingly bitter legal battle since 2017. Qualcomm has resorted to filing lawsuits against Apple for patent infringement and has won preliminary import bans against older iPhones in China and Germany.

The FTC's antitrust lawsuit against Qualcomm kicked off this week, with the FTC claiming, like Apple, that Qualcomm has used its position and portfolio of patents to impose anticompetitive supply and licensing terms on manufacturers.

Tag: Qualcomm

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