In an unexpected move, Apple has cut down production orders of their three iPhone models due to lower than expected sales. The Wall Street Journal reports that Apple’s decision to release three devices is an influencing factor, making it harder for the company to predict sales accurately and to order the necessary parts to put together the smartphones.
When Apple presented its Q4 earnings, investors were surprised to see the low demand numbers. The device that seems to be worst off is the iPhone XR, the cheapest 2018 model, whose production has been cut down twice since it was first introduced in September.
While this news don’t mean much on its own, Variety reports that Apple will no longer disclose their unit sales, and that two of their biggest suppliers have been experiencing difficulties due to an “unnamed large company” cutting back on orders.
Apple’s business model is changing, with the company’s CFO Luca Maestri claiming that unit sales are less relevant to them than they were in the past. Experts and analysts also believe that it’s too early to make predictions regarding Apple’s sales and future.
“It is too early to assume that the new iPhones aren’t selling well, especially since the supply chain-based sources said the exact same thing last year about the iPhone X, and were proven incredibly wrong when Apple released sales numbers,” says Avi Greengart, consumers director at GlobalData.
Maybe Apple is more concerned with maintaining their client base and keeping customers happy with products that satisfy expectations. Since investors won’t have unit sales at their disposal, they might just have to take a leap of faith.