Apple suppliers suffer as it struggles to forecast iPhone demand


"The laboratory of the market now points to Apple being at the limit of their price premium for the iPhone", he wrote. Apple surprised its investors when it forecasted lower-than-expected iPhone sales predictions for the upcoming holiday season, and Christmas quarter. Many iPhone suppliers have cut their quarterly profit estimates after a large customer, which is nearly certainly Apple, reduced its orders.

Foxconn, the largest Chinese iPhone assembly company, cut overtime hours usually available for its workers during peak production periods.

As recently as last week, Apple informed several suppliers that it had lowered its production plan again for iPhone XR, the Journal said. "In our experience with mobile phones, when pricing power is lost, consumer technology companies tend to either lose margins or market share or both".

Tuesday's note is the latest evidence that analysts are anxious iPhone unit sales will start shrinking in the short term.

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Apple's largest assembler of iPhones in China, thousands of workers have voluntarily left earlier than they meant to after Foxconn cut overtime hours that are typically available during peak production periods, people familiar with the matter said.

This is the second time in as many years that Apple has cut production orders for one of its newest iPhones.

The analysts believe that Apple's December quarter revenue will fall on the lower end of its guidance, and the firm cut its price target to $US182.

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