Apple warns shareholders that iPhone sales are disappointing

Deliveries of new iPhones are disappointing, Apple says. The confirmation from the electronics manufacturer comes after several months of rumors about disappointing deliveries and reduced production of Apple’s smartphone.

It is the first time that Apple has admitted that shipments of iPhones have been disappointing in the most important quarter of the year. Apple confirms the rumors to warn shareholders that sales will fall compared to the company’s own expectations two months ago. In addition to disappointing iPhone sales, this is also due to weaker economic growth in China, the company reports.

That weaker economic growth also impacted iPhone shipments. In addition, Apple thinks that many consumers will still have an old iPhone due to the cheaper battery replacement last year. Apple also points to high prices outside the US as a cause, as does the trend to buy phones without a subscription. It is not only Apple that has to deal with disappointing smartphone sales: analysts estimate that consumers bought fewer smartphones in the whole of 2018 than the year before.

There have been many indications in recent months that deliveries of iPhones would be disappointing. For example, consumer panels showed that fewer people have the latest iPhone model, it was reportedly going to produce the iPhone X again to use the OLED screens already purchased and four suppliers already issued sales warnings.

Apple points out that the sales warning is also necessary because it cannot produce enough copies of several products. For example, it couldn’t produce enough of the MacBook Air, iPad Pros and the two-year-old AirPods, among others, to meet demand. Apple will announce its quarterly results in about four weeks, on January 29.