Jun Zhang, an analyst, has predicted that Apple could cut iPhone production by nearly 4 million units for the March quarter. Zhang asserts that the Cupertino giant will cut 2.5 million iPhone XR units, 1 million iPhone Xs devices, and 5,00,000 iPhone Xs Max smartphones.
This is the second time Apple will be cutting its iPhones production. Earlier, the orders were reduced for both the iPhone XS and iPhone XR. The company is reportedly facing big problems with regards to the arrest of Huawei CFO Meng Wanzhou. The analyst further asserts that the Chinese companies are offering incentives to customers who choose Huawei over Apple.
Zhang says, “many Chinese companies showed support for Huawei by subsidizing employees who purchased devices from the company instead of iPhones.” A previous Wall Street Journal report indicated that Apple was struggling to predict demand for its 2018 iPhone lineup.
Watch: Apple iPhone XS, XS Max, and XR First Look
Besides, the Cupertino giant is withdrawing its older iPhones from German stores as the company lost two patent cases brought by chipmaker Qualcomm. A Munich court ruled that Apple and its subsidiaries had breached a European patent held by Qualcomm, as per a report by AP.
“Qualcomm’s campaign is a desperate attempt to distract from the real issues between our companies,” Apple said in a statement.“Their tactics, in the courts and in their everyday business, are harming innovation and harming consumers,” it said. “Qualcomm insists on charging exorbitant fees based on work they didn’t do and they are being investigated by governments all around the world for their behavior.