Apple supplier Foxconn has let go around 50,000 contract workers at its iPhone factory in Zhengzhou, China, with the first cuts happening in October 2018. As one source with knowledge of Foxconn’s plans told Nikkei, the scale of the cuts is not what stands out, but the fact that it’s significantly earlier than previous years.
„It’s quite different this year to ask assembly line workers to leave before the year-end,“ the source stated. Foxconn typically renews workers‘ contracts every month from August until January, at which point the workforce is scaled back for slow iPhone production season. This year, those cuts came as much as three [...]
Major Apple suppliers in Asia have been cutting their 2019 sales forecasts and some have cited an „extraordinary“ drop in Chinese demand, reports Nikkei.
Taiwan Semiconductor Manufacturing Co (TSMC), which supplies the A-series chips used in the iPhones and other devices, is forecasting a 22 percent drop in revenue for the January to March quarter. TSMC said there was a „sudden drop in demand“ for high-end smartphones, also attributing its revenue decline to the U.S.-China trade war and economic uncertainty.
The same thing goes for Nidec, a company that supplies the vibration motor in the iPhone. Nidec has dropped its full-year profit [...]
New York-based law firm Bronstein, Gewirtz & Grossman has announced it is investigating whether Apple and certain executives violated U.S. federal securities laws after the company lowered its revenue guidance by up to $9 billion for the first quarter of its 2019 fiscal year earlier this week.
The law firm is conducting the investigation on behalf of AAPL shareholders, with potential for a class action lawsuit, and encourages affected investors to obtain additional information and assist the investigation by visiting its website.
Bernstein Liebhard LLP, another New York-based investor rights law firm, launched a nearly identical investigation of Apple [...]
iPhone XR demand has been lower than expected, according to Apple analyst Ming-Chi Kuo, who has slashed his overall iPhone shipment forecast by 20 percent for the first quarter of 2019. He now expects Apple to move 38-42 million iPhones in the quarter, down from his original estimate of 47-52 million.
Kuo, in a research note with TF International Securities, obtained by MacRumors:
We have reduced our 1Q19 iPhone shipment estimation by 20% to 38–42mn units (vs. our previous forecast of 47–52mn): We cut the 1Q19 iPhone shipment estimation again for the following reasons. (1) Lower-than-expected XR demand. We have reduced our 1Q19 XR shipment estimation to 15–20mn [...]