Ap­ple to man­u­fac­ture top of the range iPhones as it bat­tles slug­gish de­mand

Daily Trust - - IT WORLD -

Ap­ple plans to launch three iPhone models this year with some new cam­era fea­tures, in­clud­ing three rear cam­eras for the most ex­pen­sive model and two for the other models, the Wall Street Jour­nal re­ported on Fri­day.

The new iPhones will suc­ceed the XR model that has shown slug­gish de­mand, which ac­cord­ing to Ap­ple was due to weak sales in China.

That led sev­eral elec­tron­ics re­tail­ers in the world's sec­ond largest econ­omy to slash iPhone prices this week.

Ap­ple CEO Tim Cook had told in­vestors that the main drag on the firm's per­for­mance in China had been a sharperthan-ex­pected slow­down in the coun­try's econ­omy, ex­ac­er­bated by the im­pact of trade ten­sions be­tween Wash­ing­ton and Bei­jing.

Ap­ple was not avail­able for com­ment out­side reg­u­lar busi­ness hours.

The Cu­per­tino, Cal­i­for­ni­abased com­pany has de­cided to stick to liq­uid-crys­tal dis­play (LCD) at a time when slug­gish sales of iPhone XR cut into its most re­cent rev­enue pro­jec­tion, the re­port said, cit­ing peo­ple fa­mil­iar with the mat­ter.

Ap­ple re­cently is­sued its first rev­enue warn­ing in nearly 12 years, send­ing its shares down 10 per­cent, their big­gest in­tra­day fall in six years.

Ap­ple plans to con­tinue with LCD model as the de­vice has been in the pro­duc­tion pipe­line for months, the re­port said.

How­ever, for 2020, Ap­ple will fully switch to the or­ganic light-emit­ting diode, or OLED, dis­play for iPhones, thereby com­pletely drop­ping the LCD model, the re­port said.

Shares of the com­pany was nearly flat in pre­mar­ket trad­ing.

Ap­ple, which slashed its quar­terly sales fore­cast last week, has re­duced planned pro­duc­tion for its three new iPhone models by about 10 per­cent for the Jan­uary-March quar­ter, the Nikkei Asian Re­view re­ported on Wed­nes­day.

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.

How­ever, it comes as Ap­ple CEO Tim Cook told Mad Money's Jim Cramer, when asked about re­ports that the iPhone XR was a flop, Cook says he calls 'bologna on that.'

He said the iPhone XR has, in fact, been the most pop­u­lar iPhone 'ev­ery sin­gle day' since it started ship­ping out to cus­tomers.

Many an­a­lysts and con­sumers have said the new iPhones are over­priced.


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