It was about a month ago when we first heard, thanks to a WSJ report, that Apple is cutting production orders for the 2019 iPhones. Indicators of weak iPhone sale performance arrived shortly after, and Apple restarted the iPhone X production around the same time it started offering subsidies. Apple insider Ming-Chi Kuo followed suit in revising estimates, and now we’re hearing further indication that Apple will continue to cut iPhone production, with the iPhone Xr taking the biggest hit.

Analyst Jun Zhang said Apple is facing a particularly big issue in China. Fueled by the arrest of Huawei CFO Meng Wanzhou, Chinese companies are offering incentives to those who choose Huawei over Apple.

Analyst Jun Zhang notes that many Chinese companies showed support for Huawei by subsidizing employees who purchased devices from the company instead of iPhones.

Zhang predicts that for the March quarter, Apple will cut 2.5 million iPhone Xr units, 1 million iPhone Xs units, and 500,000 iPhone Xs Max units. Of course, these reports aren’t always a clear reflection of things in reality, but are a good indicator on what might be going on behind the scenes. Take them with a healthy dose of skepticism.

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