Apple is cutting its Q4 plans by a wopping 40% drop in iPhone production as per a report by Friedman Billings Ramsey analyst Craig Berger. This article is covered by AlleyInsider which says - instead of a 10% sequential production drop in Q4, Berger’s “recent checks” suggest Apple’s iPhone production could fall “more than 40%” from its Q3 levels. Berger thinks a similar cut was made for Q1, but notes that there’s still plenty of time to change that.
Does this mean iPhone demand is slowing down? Really don’t know. Berger from Friedman Billing Ramsay notes that the iPhone cuts are “a negative global demand” signal:
That the firm’s iPhone production plans are being revised lower suggests that the global macroecomomic weakness is impacting even high-end consumers, those that are more likely to buy Apple’s expensive gadgets, and that no market segment will be spared in this global downturn. This is a negative signal for global demand, in our view.
Apple shipped 6.9 million iPhones in its September quarter, but that included 2 million iPhones in channel inventory in 30,000 distribution points.
[via - AlleyInsider]
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