Apple to cut iPhone production as it prepares for iPhone 11 launch

Apple to cut iPhone production as it prepares for iPhone 11 launch

Apple hasn’t been performing too well in the smartphone market lately and according to a new “smartphone supply chain” note by Rosenblatt, the Cupertino giant is about to cut production yet again. This time around, though, the change isn’t due to an unexpected drop in demand.

Apple has a lot of iPhone XS and XS Max inventory lying around


In order to compensate for the usual decline that happens throughout the third quarter of the year, Apple is reportedly preparing to cut orders for “older iPhone model production” slightly starting next month. The devices that are affected by the changes weren’t listed, but it seems the 2018 lineup could be the most affected.

According to the research note, inventory of the iPhone XS and iPhone XS Max has increased noticeably throughout the second quarter of 2019. This could either be because of weak demand or a lack of production cuts in the past. But either way, a significant manufacturing change starting this coming quarter seems extremely likely.

Regarding the iPhone XR, this smartphone was largely reported to be the most popular smartphone in North America throughout the first three months of 2019. But according to Rosenblatt, interest in the device is now beginning to decline “due to normal Q2 seasonality,” hence why another big production cut could be on the cards.

iPhone XS & XS Max

iPhone XS & XS Max

It’s unclear at this point how production changes will affect older models but, with the iPhone 7 series now nearing its third birthday, Apple could potentially ax the devices in many global markets come this September when it announces the iPhone 11 series. This would leave the models on sale in just a handful of emerging markets such as India and ultimately warrant an order cut at some point this quarter.

The iPhone 11 is right on schedule


Moving away from the current iPhone lineup and on to the 2019 models, today’s research note suggests Apple’s iPhone 11 “production ramp schedule” is going according to plan and currently on track. In other words, there have so far been no delays. 

The iPhone 11, iPhone 11 Max, and iPhone 11R, for those of you that aren’t yet aware, are expected to arrive equipped with the same displays found on the current-gen iPhone XS, iPhone XS Max, and iPhone XR respectively.

According to leaked information, the front panels will be paired with extra cameras on the back. Specifically, the iPhone 11 and 11 Max are set to gain a new 12-megapixel ultra-wide-angle lens that supports a 120-degree field of view, while the iPhone 11R should inherit a 12-megapixel telephoto camera that offers 2x optical zoom.

iPhone 11 & 11 Max CAD-based renders

iPhone 11 & 11 Max CAD-based renders


Other specs and features should include Apple’s next-gen A13 processor which recently entered production alongside iOS 13. The latter will make its debut next week and will be launched in September. Recent leaks and screenshots suggest it’ll introduce a new Dark Mode and a number of updated apps.

Apple could be severely impacted by US-China tensions. Samsung hopes to benefit


Rosenblatt’s report didn’t provide any iPhone 11 sales estimations, but it did note that the increasing tensions between the US and China will make it hard for Apple to maintain its market share in the region. In fact, Rosenblatt believes the company’s share will continue to decline, something that could ultimately affect the iPhone 11’s release later this year. 

Curiously, the biggest beneficiary of the international tensions could be Samsung. Due to Huawei’s US ban, it’s claimed the South Korean giant increased its component orders to 10 million units this week in anticipation of an increased market share across Europe, Japan, and Taiwan throughout the third quarter of 2019.

Apple to cut iPhone production as it prepares for iPhone 11 launch

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15 Comments

1. Man_Utd

Posts: 163; Member since: Feb 03, 2015

Seems like Apple has given up on making a competitive phone. That's a shame. Competition drives innovation.

2. scarface21173

Posts: 644; Member since: Aug 17, 2014

Just interested in selling services

12. sgodsell

Posts: 7004; Member since: Mar 16, 2013

Well with the recent rumors of Apples 2020 iPhone are going to bring back TouchID under glass (screen), and 5G. Then why buy the 2019 iPhones, especially since they won't have 3D touch, no TouchID, and no 5G.

13. iloveapps

Posts: 690; Member since: Mar 21, 2019

They will still buy because there’s an Apple logo at the back. People sell their old phone for a new one.

4. blingblingthing

Posts: 912; Member since: Oct 23, 2012

Innovation is expensive and Apple is focused solely on profit. So the new model is just the usual recycled phone and hope the person buys some added apple service. Sure the service is mediocre compared to the competition, but if you buy an iPhone, odds are this isn't important to you.

6. User123456789

Posts: 644; Member since: Feb 22, 2019

Yes that is why many companies just copy other. It is cheaper ...

9. lyndon420

Posts: 6589; Member since: Jul 11, 2012

There's already enough innovation between all the different Android OEM's to keep things rolling along. When Blackberries died off if didn't hurt innovation in the industry very much.

11. oldskool50

Posts: 929; Member since: Mar 29, 2019

Honestly, when was the last competitive iPhone? Wait did Apple ever make one? Nope! The iPhone was it's own thing. It was others who had to compete with Apple and with themselves too and tbat is what drove others to do better because they had 2 birds to kill and its Samsung who came out the winner. The main reason Samsung won the battle is because they didn't have to depend in 3rd parties for all their components.

14. midan

Posts: 2595; Member since: Oct 09, 2017

”The main reason Samsung won the battle is because they didn't have to depend in 3rd parties for all their components.” Samsung won the battle? :D Samsung ”won” the battle because they mostly sell cheap phones, Samsung ASP is around $230 while Apple is near $700 or something. Sure Samsung sells more units, but from business view Apple is clear winner and been for many years and i’m not expecting that to change, end of the day Apple is only company who has product and experience which stand out from the rest. Like huawei and all those Chinese companies are showing Samsung is in big trouble because there’s no reason to buy Samsung over some other Android phones.

15. oldskool50

Posts: 929; Member since: Mar 29, 2019

Who give a crap what they sell . The point is baseless AppleFan. Just let the adults talk. This kind of conversation is past your ability to understand or speak about. Can you afford an iOhone I've $1000 and pay cash for it? Based on your own admission, you cannot. So shutup. So what they mostly make cheap phones. Just what, 80%+ of the planet can only afford cheap phones. Does that mean we shouldnt .ake a product they can afford? Suppose we just make EVERYTHING cost $1000, what will you buy then? Let's make all cheap.products like socks, underwear and even food all have a starting price for $1000. Arrogant little fa ous thi k that because something is low in price its cheap. Everyone cant afford luxury products, not even you. Shut up man you are totally just ignorant to talk too.

3. blingblingthing

Posts: 912; Member since: Oct 23, 2012

....."are expected to arrive equipped with the same displays found on the current-gen iPhone" So OnePlus ups their game and goes to a QHD AMOLED 90hz panel while Apple will gladly sell you a smaller LCD in 2019 for $50 more?

5. User123456789

Posts: 644; Member since: Feb 22, 2019

They should stop making 6, 6s, 7 and X too. ..... Ridiculous a company still making phones from 3, 4 years ago .

7. mackan84

Posts: 253; Member since: Feb 13, 2014

One word: India

8. User123456789

Posts: 644; Member since: Feb 22, 2019

So, they'd rather sell a 2014 phone than lowering prices of 8+ and X to something near $450.?

10. oldskool50

Posts: 929; Member since: Mar 29, 2019

According to Apple, they didn't expect the XS or Max to. E the top selling which us wby they made the XR. So they are stuck with excess stock, not because they didn't cut production, it was because those phones are too costly everywhere in the world and they were not selling very well to begin with and then the XR cut further into the falling sales. Even though the XR sold better than the other models, it still had lower than expect sales, likely. Because by the time they released it, people had bought other options whether Apple's or not. Which releasing the XR after the mist expensive models was a completely dumb move. They should have released them all at the same time. The XI will likely start off with slower product as Apple will keep the dame prices ot they could go up thanks to Trump, which will hurt sales even more. I expect if the price does increase, Apple could lost as much as 30% of sales in all markets except the US where sell would drop 20-25%. This is why Tim Cook was talking to Trump. Tim Cook needs to get every OEM who makes products in China on the phone to talk to Donald Duck or Trump is gonna help Apple meet their own demise.

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