Apple has reportedly been cutting production orders on its new iPhone XS, iPhone XS Max and iPhone XR in the face of extensive weakness in China — some of that stemming from anti-Western sentiment after Canada’s arrest of Huawei CFO Meng Wanzhou.
Considering that many Taiwanese component manufacturers rely on Apple for the bulk of their business on an annual basis, this has left more firms struggling into 2019 than other years. But to the degree that the country is pinning its aches on Apple, we’re now at a new level.
The National Development Council convened a cabinet meeting on Friday to deliver its annual outlook and stated, according to Digitimes‘s wording:
…lackluster sales of new iPhones can be blamed partly on the devices’ lack of innovations, which may directly impact revenue performance of supply chain partners in the country in 2019.
Six of the top ten grossing companies in 2017 are Apple suppliers and all of them were impacted by the company’s latest estimates for dismal holiday sales.
In terms of quantifiable innovation, Apple has retained the same exact TrueDepth camera system for Face ID and Animoji features and has applied it to all three new models. All now feature in-display notches to accommodate the new hardware. The iPhone XR is available in the most number of colors since the iPhone 5c.
Apple’s declining expectation in iPhone production is just one factor the country faces in the new year. Others include a potential interest rate hike in the US, continued tensions in US-China trade, oil price volatility and populism.