Apple has once again slashed production plans for its brand new iPhone XS, XS Max and the XR models. The holiday shopping season in the U.S. is crucial to boosting third quarter sales.
As per a report from the Wall Street Journal, Apple Inc has cut production for all three iPhone models that were launched in September 2018.
The move comes midst lower-than-expected demand for the new iPhones. According to the WSJ, Apple’s decision to offer more models has made it more difficult to anticipate the number of components and handsets the company needs, according to the paper.
Apple’s decision has shocked investors, since this comes in the wake of Apple’s report that it has forecast lower-than-expected sales for the crucial U.S. shopping season.
Forecasting sales of Apple’s iPhone XR have been particularly problematic for analysts. Apple has cut production plans by nearly a third of its 70 million units with some suppliers saying they had been asked to produce between September 2018 and February 2019, said the WSJ report.
As recently as last week, Apple informed several suppliers that it has once again lowered its production plans for the iPhone XR, reads the WSJ report.
Apple did not respond to a request for comment outside regular business hours.