Apple is cutting its production plan for new iPhones by about 10% between January and March, the Nikkei Asian Review reported on Wednesday.
The company late last month asked its suppliers to produce fewer of its new iPhones than planned in the first quarter of 2019, Nikkei said, citing sources with knowledge of the request.
It said the planned production volume for new and old iPhones, including the XS Max, XS, and XR, will fall to between 40 million and 43 million units. This is down on the previous projection of 47 million to 48 million units.
It is the second time in two months that Apple has trimmed production plans, Nikkei said.
The revelation comes just a week after Apple shook global markets with its first earnings warning in nearly 17 years, in which it said revenue would be more than 7% lower than it expected.
Among a shopping list of reasons for the revised projection, Apple blamed weakness in the Chinese economy and US President Donald Trump’s trade war.
The warning led Wedbush analyst Daniel Ives to say it was “Apple’s darkest day in the iPhone era.” He added: “The magnitude of the top-line miss… with China demand the culprit was jaw-dropping in our opinion.”
Business Insider has contacted Apple for comment. The company did not respond to Nikkei’s request for comment.