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Apple reportedly cuts iPhone production by 10 percent for first quarter

Apple reportedly cuts iPhone production by 10 percent for first quarter

That rare forecast cut exposed weakening iPhone demand in China, the world's biggest smartphone market, where a slowing economy has also been buffeted by a trade war with the United States. But if even "affordable" iPhone models like the XR are retailing for £749 / $749 (AU$1,229), with flagship models pushing into four-figure sums, Apple may be testing the determination of its fan base a bit too hard.

Foxconn, formerly known as Hon Hai Precision, is nearly as well known as Apple these days and is the rather infamous Taiwanese-based manufacturer of iPhones and other Apple-designed products. The report indicates that Apple is going to reduce production from 43 million units to 40 million iPhones.

The report suggests that the move is a sign that Apple is expecting a further profit hit later in the year, marking a bleak start to 2019 after a disappointing end to 2018.

Market research firm Canalys estimates shipments fell 12 percent in China past year and expects smartphone shipments in 2019 to dip another three percent, to below 400 million for the first time since 2014.

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Apple did not immediately respond to a Reuters request for comment.

This is the second time we've heard about Apple cutting production orders for the 2018 iPhone models - it reportedly did so back in November after they didn't sell as well as analysts expected.

Chief Executive Tim Cook reiterated in an interview with CNBC on Tuesday that India was a major focus for Apple. Cupertino probably decided on that initial goal based on previous sales, seeing as it sold 52.21 million units within the same period past year.