Orders for iPhone Parts Drop 20 Percent, Supply Chain Warned

Apple has reportedly told its supply chain to prepare 20 percent fewer components for iPhones that will debut later in the year.

Iphone

According to the Nikkei Asian Review, Apple has reportedly told its supply chain to prepare 20 percent fewer components for iPhones that will debut later in the year. The company is taking a cautious approach toward shipments compared to last year's small orders of the iPhone X. 

Apple placed orders of upwards of 100 million units for the iPhone 8, iPhone 8 plus and iPhone X last year, but is currently only expected to have 80 million units for the new models, sources told the Nikkei Asian Review

Iphone shipments were down 1 percent in the last year, however, the decrease didn't just hit Apple, but went throughout the industry. Smartphone shipments were down 0.3 percent in 2017, creating the first decline ever in the industry, according to IDC. 

Nikkei Asian Review reports that Apple's supply chain was told previously to prepare two OLED models in the hopes of avoiding delay. Component shortages and production quality issues delayed the iPhone X's debut last year, likely harming sales. 

Suppliers are currently undergoing Apple's verification process for the iPhones. 

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