The Tech Giant Apple may be concerned that their next iPhones won’t be as popular as the last model. The company went as far as to inform suppliers that they would be making 20% less components for the upcoming iPhones. Apple is starting to feel that their iPhone hardcore fan base may be waning and have concerns for their flagship smartphone.
In pre-market trading Apples stock fell 2%, which pulled the NASDAQ down by 0.8%.
Last year, Apple had told its suppliers to make shipments of 100 million for their iPhone 8, iPhone 8 Plus and iPhone X products. However, due to weak sales, and reports from phone companies that customers weren’t upgrading their phones to the 8 in the high numbers they had in previous years, Apple is proceeding with caution. They are now telling their suppliers to prepare to manufacture only 80 million phones.
Apple is currently getting ready to introduce three new phones in the fall, and all will have Face ID cameras. The higher end phone models will also include bright OLED displays and the lower cost model will have an LCD display.
Iphone sales have been flattening more and more, as of late, and investors are concerned. During the first 3 months of 2018 Apple shipped 52.2 million iPhones, an increase of 3% over the same time period last year. The expected number of sales was 53 million. Leaving them missing the mark by 800,000.
However, Apples Stock is up 12% this year so are things at Apple really that bad? Investors will be the judge of that.