Apple shares fall on report of slashed iPhone production orders


Tim Cook, CEO of Apple, speaks in Brussels, on October 24, 2018. 

ARis Oikonomou | AFP | Getty Images

Tim Cook, CEO of Apple, speaks in Brussels, on October 24, 2018. 

Shares of Apple fell in the premarket Monday after a report said the tech giant has cut down on iPhone production orders.

The Wall Street Journal reported, citing people familiar with the situation, that Apple has slashed orders for the iPhone XR, XS and XS Max models. The three models were unveiled in September.

Apple told its suppliers it planned to slash production of the XR by a third of the approximately 70 million units it had asked them to build between September and February, the Journal reported. It added that in the past week the company told suppliers it plans to trim production of the XR again.

Apple shares lost up 2 percent in premarket and were last down about 1.5 percent.

The tech giant’s stock has been under pressured lately. Last week, it dipped into correction territory, down 20 percent from an all-time high that brought its market cap to more than $1 trillion. Lumentum, a supplier of laser technology used in Apple’s FaceID, cut its outlook citing a reduced shipment from a major customer.

Several analysts — including those at Guggenheim and UBS — have downgraded the stock recently or lowered their 12-month price targets on Apple amid fears that iPhone sales will slow down moving forward.

Apple did not immediately respond to CNBC’s request for comment.

Click here to read the Journal’s full report.

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