Apple reportedly cuts production orders for iPhone XS, iPhone XS Max, and iPhone XR

“iPhone unit sales haven’t been up to the mark but it’s not as big a problem as it sounds”

A couple of weeks after reports of Apple reducing the production orders for iPhone XR emerged online, there is word that the company has made a similar move for the flagship iPhone XS and iPhone XS Max. According to The Wall Street Journal, the demand for the new iPhone lineup has been weaker than expected, especially for the budget iPhone XR. Owing to this, Apple is cutting production orders from its list of suppliers including Foxconn, Pegatron and Wistron among others.

This shows that that despite not being able to sell too many units, Apple has managed to grow at a pretty good rate in terms of revenue. Something that’s a reflection of its recent change in strategy for iPhones, which is focusing more on raising the amount of money made from each unit than driving sales by reducing prices. And judging from the recent earnings call, it seems to be working. Despite seeing no change in iPhone unit sales year over year, the Cupertino giant witnessed a 29 percent revenue increase in its smartphone division. It should also be noted that Apple will not be disclosing the number of units it sells from the next quarter.

And it’s not just iPhones, Apple products across the board are witnessing a price hike. The refreshed MacBook Air now starts at $1,199, up from the previous $999, and the Mac mini starts at $799, up from $499. Even accessories such as Apple Pencil 2 and the new Smart Keyboard have become costlier.

And apart from increasing the overall revenue, Apple’s price hike strategy has benefitted the company in another way, that is driving sales from the company’s services division. Apple Care, iCloud, and Apple Music, reached an all-time revenue record of $10 billion during the previous quarter (thanks in particular to the high repair costs of Apple products).

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