The suppliers of Apple are feeling the squeeze yet again after the iphone manufacturer is said to have reduced the production orders for a third time in recent weeks.
According to reports that were released by the Wall Street Journal, the lower-than-expected demand for the three new iPhone models of Apple, the XS, XS Max and XR, has made it hard for the tech giant to accurately anticipate the number of phones that they should produce.
The shares of the company dropped by more than two percent as the markets opened in New York this afternoon.
The news comes after a supplier of 3D sensors that are used in the iPhone facial recognition technology of Apple, Lumentum Holdings, lowered its financial guidance for 2018 last week because of a decline in orders from one of its major customers. Many investors suspected that this customer may be Apple. Their reaction to the news caused the market value of the tech giant to drop by $50 billion (£38.9 billion) in just one day.
It was also reported at the start of the month that Apple informed two of its smartphone manufacturers to stand down on the plans of the company for the additional production lines for the iPhone XR.
Apple shocked the market last month with a reduced forecast for the upcoming festive quarter. It predicted lower-than-expected sales for both its iPhone and iPad products. Tim Cook, the chief executive of Apple, attributed this decline to an inability to meet the demand for its new products, among some other issues.
The Journal reported that the firm is said to have lowered its production plan for the iPhone XR by up to a third of the nearly 70 million units that some suppliers had been contracted to produce between its release last September and February 2019.
Apple was not immediately available to respond to a request for comment regarding the matter.