Apple to ship 20% fewer new iPhones than expected this year

Leonhard Foeger  Reuters

The Cupertino, California, company told parts suppliers to produce 20% fewer components for versions of its iPhone X and iPhone 8, Japanese financial outlet Nikkei reported, citing sources familiar with the matter.

Apple may have been riding the iPhone wave over the past years, but as smartphones become more ubiquitous, the firm appears to be taking a more cautious tack.

Apple's share price took a 2 percent hit when the news broke, and its suppliers were knocked by up to 6 percent. Under the revised estimates, Apple expects to ship 80 million new iPhone units.

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Apple may be anxious that its next iPhones won't be as popular as its last.

There might be fewer iPhones heading to Apple Stores this year.

Apple is preparing to introduce three new iPhones in the fall, according to the report.

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That said, the £999 iPhone X was still the best selling smartphone in early 2018.

Investors have been anxious for a while now that iPhone sales are flattening.

Apple's stock has added more than $200 billion in the past year, but demand for the iPhone X has underwhelmed investors. Previous reports suggested that this request by Apple could lead it to release the OLED sporting 5.8-inch iPhone Xs and 6.5-inch iPhone Xs Plus in September prior to the release of the iPhone 9.

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Kuo said that Apple is likely to launch a 6.5-inch OLED "IPhone X Plus", a second generation of iPhone X and an iPhone with a 6.1 inch screen. "Apple is doing enough, in general, to keep the ball moving forward". For the fiscal year 2017, iPhones contributed 62 per cent to the company's total revenue, while services accounted for 13 pct.

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