Apple has had a particular problem setting expectations for the iPhone XR and cut its production plan late last month by up to a third of the 70 million units it had asked some suppliers to produce between September and February, the sources added. In the past week, Apple informed several suppliers it expects even lower supplies of the XR, faced with a maturing smartphone market and tough competition from Chinese producers. Apple declined to comment on the report.
The supply chain has been feeling the effect of these forecast issues. Suppliers Qorvo, Lumentum and Japan Display all recently lowered their profit guidance, citing a reduction in previously-placed orders from a large customer. Apple was not named, but it accounts for a third to half of revenue for these companies, according to filings and estimates. Ams also lowered its outlook, citing "demand changes" at a major consumer customer. At Foxconn, Apple’s largest assembler of iPhones in China, thousands of workers are leaving earlier than intended in the day, after Foxconn cut overtime hours typically available during peak production periods, other sources said. Foxconn declined to comment.
Dialog Semiconductor said it now expects flat revenues for next year, due to the slowdown in business with Apple.
