Wall Street Journal report suggested the "deteriorating demand relative to what the company had initially expected" for the new iPhones, according to Hall's take, and he sees "additional twists" to what was reported. Meanwhile, factors such as "severe Chinese demand weakness" in the late summer and a strengthened US dollar came as unexpected headwinds.
And in the past week, Apple told several suppliers that it cut its production plan again for the iPhone XR, some of the people said Monday, as Apple battles a maturing smartphone market and stiff competition from Chinese producers.
Similar to a year ago, Apple had recently introduced three new iPhone models into the market.
The company used the increasing average iPhone sale price to justify a significant reporting. We saw a similar move take place past year, when iPhone 8 production was cut as many customers opted for the iPhone 7 or iPhone X instead. We'll definitely know how well the iPhone XS, XS Max and iPhone XR perform in the next fiscal 2019 Q1 report.
Apple has cut production orders in recent weeks for all three iPhone models launched in September, the Wall Street Journal has reported, citing sources.
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But the analysts do not see many positive signs for Apple in the note, which comes a week after Goldman Sachs first sounded the alarm on Apple, and wrote that "end demand for new iPhone models is deteriorating".
All that said, it likely wouldn't affect Apple too much. Shares of Apple have dropped more than 20 percent from an early-October record, pushing the Dow component into bear-market territory.
Apple's business model is changing, with the company's CFO Luca Maestri claiming that unit sales are less relevant to them than they were in the past. Apple's stock also fell this month due to the lower sales number, in addition to Apple no longer revealing the device unit sales.