Apple posts 20pc revenue boost to $62.9bn for Q4
- Author: Delia Davidson Nov 07, 2018,
Nov 07, 2018, 2:07
It's possible, for instance, that overall iPhone demand is down and Apple is reducing its production costs.
This move has signaled disappointing demand for the XR, as Apple told Foxconn and Pegatron to halt plans for additional production lines dedicated to it.
Foxconn is now using around 45 production lines for the iPhone XR model, compared with 60 it first prepared, meaning it would produce around 100,000 fewer units daily, down 20 to 25 percent from its original outlook, said Nikkei, citing one of the people. However, Apple did indicate that it's a feature that will be part of all future iPhones, which has brought last year's gleaming iPhone models to suffer from the same wrath.
A smaller third assembler, Wistron, originally tapped to be on standby for rush demands, will also reportedly not receive rush orders this season.
Taiwanese assembler Pegatron Corp fell almost 4 per cent and rival Hon Hai Precision Industry Co Ltd (Foxconn) fell 2.5 per cent. Apple is widely considered the biggest customer for Foxconn. Apple previously planned 20 million units for the older iPhone models this quarter, but raised the figure to 25 million units, the individual said.
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Apple also stoked worries about iPhone sales last week when it said that beginning this quarter, it will no longer break down unit sales for iPhones, iPads and Macs.
What about the increased iPhone 8 and iPhone 8 Plus production? The device looks like the more-expensive iPhone XS and iPhone XS Max, but comes with a cheaper LCD screen, instead of the OLED display you'd find in the higher-priced models.
Apple closed just above $200 on Monday amid a wider tech sell-off that has seen other FAANG stocks - Facebook, Apple, Amazon, Netflix, and Google - fall in recent weeks.
First off, it's hard to know if any of this is true, and now that Apple has stated that it will stop disclosing unit sales, we might never know.
Ives reaffirmed his $310 price target for Apple's stock, representing more than 50% upside to the current stock price.