iPhone XR production cuts not due to soft demand – analyst

“Earlier this week, a somewhat sketchy report surfaced claiming that Apple told its manufacturing partners to reduce iPhone XR production due to lower than anticipated demand,” Yoni Heisler reports for BGR. “Even more alarming, the report claimed that overall production might drop by as much as 25%.”
“The claim that iPhone XR demand is exceedingly below expectations runs somewhat counter to a previous report from reputed analyst Ming-Chi Kuo who just recently raised his iPhone XR sales estimate for the December quarter,” Heisler reports. “Further, it seems odd that Apple would drastically cut production ahead of the busy holiday shopping season. So just what, exactly, is going on?”
“Well as it turns out, Apple may have indeed ordered a rollback in production, but not for reasons pertaining to demand,” Heisler reports. “According to a research note from analyst Jun Zhang (originally brought to light by Philip Elmer-DeWitt’s Apple 3.0), there may have been some quality control issues involving the iPhone XR’s printed circuit boards that led to a reduction in production output.”
Read more in the full article here.
MacDailyNews Take: Don’t hate the manipulators, profit from them.
Even if a particular data point were factual it would be impossible to accurately interpret the data point as to what it meant for our overall business… There is just an inordinate[ly] long list of things that would make any single data point not a great proxy for what’s going on. Apple CEO Tim Cook, January 23, 2013
SEE ALSO:
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Nikkei: Apple to decrease iPhone production 10% in first quarter of 2017 – December 30, 2016
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[Thanks to MacDailyNews Readers “Fred Mertz” and “Edward W.” for the heads up.]