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Home / Technology / Analysts predict that Apple will once again restrict iPhone production, with iPhone XR having the greatest success

Analysts predict that Apple will once again restrict iPhone production, with iPhone XR having the greatest success



Rosenblatt analyst Jun Zhang has come out with a new investor note today, predicting that Apple could cut iPhone production by another 4 million units in the March quarter of 2019. Zhang's forecast comes that Apple has already cut the iPhone XS and the iPhone XR production at least once.

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In his investor note, Zhang says Apple faces challenges in China, especially in connection with the arrest of Huawei CFO Meng Wanzhou. We outlined this possibility for the first time last week, explaining that Apple could be threatened by arresting retaliatory measures. As noted in Seeking Alpha Zhang says in his note that Chinese companies already offer advantages over Apple to those who choose Huawei:

Analyst Jun Zhang points out that many Chinese companies support for Huawei showed by subsidizing employees who bought equipment from the company instead of iPhones.

In particular, Zhang predicts that Apple will reduce iPhone XR production by about 2.5 million units in the March quarter, while iPhone XS production could hit one million units. The iPhone XS Max could limit the production by 500,000 units.

The Wall Street Journal reported last month that Apple has reduced orders for both the iPhone XS and the iPhone XR. This report indicated that the company had difficulty predicting the demand for its three-tier iPhone series. Many Apple vendors have also exceeded expectations due to order reductions.

In related news, Apple's market capitalization today closed at $ 744 billion. While the overall market has suffered as well today, AAPL's market capitalization is now well below Microsoft's, which is $ 779 billion.

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