Apple has reduced production orders for all three of its new iPhones, according to a November 19th, 2018 report from the Wall Street Journal.
The decision comes following the company’s inability to accurately predict demand for the different elements of its current three-model iPhone lineup.
This is the second time in as many years that Apple has cut production orders for one of its newest iPhones. In 2017, overestimating demand for the then-new iPhone X, the tech giant cut orders for its first OLED smartphone by as much as 20-million units. Despite the decrease, the iPhone X went on to become the single-most popular smartphone model that year.
Due to the high average selling price of each iPhone model, Apple to some extent is shielded by downturns in global consumer demand. Apple also has its services business to help continue to grow revenue even if the iPhone falters.
The same is not true with Apple’s suppliers, however, who, according to the Wall Street Journal, have been thrown into turmoil by the ups and downs in iPhone demand.
An anonymous supplier told the Wall Street Journal, “Growth fixes a lot of sins. When it slows, rocks to start to show up in the bottom of the ocean.”
“Doing business with Apple is very risky as it often reverses what is has promised,” added the supplier, in the same interview with the Wall Street Journal.