The company also warned last week that overall sales for the holiday season would likely be lower than expected.
Jobs Market Growing, US Unemployment Decreasing
The hospitality sector gained 42,000 jobs, the strongest bounce since last October's recovery from Hurricanes Harvey and Irma. All eyes were on the U.S. jobs report before the open, which showed hiring picked up more than expected in October.
Wistron, one of Apple's lesser known iPhone assemblers, was reportedly asked to remain on standby for production of the iPhone XR earlier in the year, but will not be receiving any orders to produce more iPhones. A source familiar with the matter said: "for the Foxconn side, it first prepared almost 60 assembly lines for Apple's XR model, but recently uses only around 45 production lines as its top customer said it does not need to manufacture that many by now".
A bunch of Apple's other Taiwanese suppliers fell sharply, including camera lens-maker Largan Precision Co Ltd, which was down more than 7 per cent, and Flexium Interconnect Inc, which fell 6 per cent. It's also good to see what the ... Apple previously told Wistron to stand by for rush orders, but now the supplier will not receive any orders for the holiday season. This is not the first time, five years ago, when Apple launched the iPhone 5C with plastic back, it had cut production orders a month after its launch, which fuelled speculation of weak demand for the model. However, it doesn't bode well that the device is seeing such little demand, especially when you consider it delivers the same speed as the iPhone XS with many similar features - at a much lower cost.
This information may help explain why Apple provided a dim forecast for iPhone sales in the current quarter.