Apple cut 2, 5 million iPhone Xr and 1 million iPhone Xs
This information was made by analysts before the US-China diplomatic tensions related to Huawei’s case. This is what could lead to a wave of boycott of American devices.
Jun Zhang, an analyst with Rosenblatt Consulting, recently sent a notice to customers that Apple could take a big step down in iPhone production in the near future. This reduction is expected to be about 4 million iPhones, with a decline in the second quarter of the fiscal year, ending in March.
The reason for Jun Zhang’s assumption that Apple will reduce production comes from his predictions of Apple’s weaker sales in the Chinese market.
However, this is not related to the recent ruling by the Chinese court in Apple’s lawsuit with Qualcomm. Accordingly, China has issued a preliminary ban on iPhone models running iOS 11 (including iPhone 6s – iPhone X) in violation of Qualcomm’s patent for allowing users to adjust image sizes and manage apps with touch screen.
The analyst said that Apple’s business results in China would weaken due to Huawei’s case-related tensions. Just a few days ago, Huawei’s Vice President and Chief Financial Officer was arrested in Canada due to requests from the US.
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The case also led a Huawei product supplier Menpad to ban the use of Apple products for employees. This may form a wave of boycott of Apple products when other companies in China have also begun to take similar moves.
It is still unclear whether Chinese nationalism has a strong impact on iPhone sales. However, Rosenblatt’s analyst predicts that Apple will cut about 2.5 million iPhone Xr, 1 million iPhone Xs and about 500,000 iPhone Xs Max in the next quarter.