June 9, 2018- Japanese financial daily Nikkei, submitted it its article, Apple Inc. is ready to export around 80 million new model iPhones till Christmas, which have gone down about 20% from what they had planned last year to export till that time.
The paper reported that The California-based firm, communicated with all its suppliers to make minimum 20% fewer components for new iPhones, which they had planned to launch till the second half of 2018, compared to last year’s plans for its iPhone X and iPhone 8 models. the report also added that it is expected that consumer excitement for new editions of the smartphones may be cooling after years of scorching growth, sending shares in Apple and many of its major suppliers lower and weighing on global stock markets.
Atlantic Equities analyst, James Cordwell said, “This news needs to be viewed in the context of Apple probably being overly optimistic last year in relation to the prospects for its new phones, leaving it with excess inventory in the first part of this year”. He also added, “At least part of this lower order forecast probably relates to Apple just being a little more realistic.”
The iPhone to date is the biggest revenue generating product manufactured by Apple Inc. The company sold around 217 million iPhones, including all the other older models until the end of Sept. 30. The company sold 129.5 million iPhones in the past two quarters, little changed from the same period a year earlier. The unit, which includes Apple Music, the App Store and iCloud, has earned around $9.1 billion in revenue in the second quarter.
Analysts said they have already expected that Apple would sell fewer phones this year as compared with last year as because the global demand for phones tightens and competitors eat into its sales.