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Apple cut down on the old generation iPhone to focus on producing new iPhones

Apple has cut production of old iPhone models in the third quarter of 2019, according to a new report from analysts. The move showed that demand for older iPhone models began to decline and the company was ready to produce iPhone 2019 models.

Apple's latest iPhone is not yet a great success. An ongoing trade war between the United States and China, along with rising prices, has driven demand down.

According to analysts from Rosenblatt, those are the reasons for the increase in inventories of iPhone XS and iPhone XS Max in the second quarter. Either way, Apple is cutting down on old iPhone production to prepare for the new product line.

Sales of iPhone XR are also reduced. That is a judgment from analysts, but they say that the reduction in sales is due to seasonality. In other words, demand has peaked during the holiday season and now is the time when demand decreases.

Rosenblatt also warned that Apple will continue to lose market share in China this year. Like Apple, Rosenblatt said that the main reason was because of tension between the United States and China.

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Article source: cultofmac


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