It appears that Apple is now in the preparation mode for the 2019 iPhone release as reports emerged that production of older iPhone models will be cut down beginning in the third quarter of the year. Despite the adjustment, it is believed that the mass manufacture of the sequels to the iPhone XS, the iPhone XS Max, and the iPhone XR remains on schedule.
The imminent production cuts, according to Apple Insider, were part of the smartphone supply chain report issued by Rosenblatt Securities. What motivated the move was likely due to the slowdown that affected the global mobile phone market in recent quarters as evidenced by the declining sales of the current iPhone lineup.
Apple's decision to cut back on future orders for older iPhones was likely caused too by weakening demand in Asia, particularly in China. It's possible too that the reduction was in line with Apple's plan of implementing a longer upgrade cycle.
The Rosenblatt report did not specify the models that will be affected by the assembly downgrade but it is likely that manufacture of the 2018 models will see a significant decrease. This is especially true in the case of the iPhone XR sales, which the market research note said have been retreating "due to normal Q2 seasonality."
As for the iPhone XS and XS Max, it is possible that Apple has sufficient stocks of the latest models, which indicates that the company is inclined to curb their production as well.
Likewise in line with the production cuts is the possible discontinuation of the iPhone 7, which currently is Apple's legacy offering, at least in North America and other key markets.
Rosenblatt also suggested that changing its production plan is partly in anticipation of the iPhone's shrinking market share in China. As can be expected, such a scenario is being blamed on the ongoing trade tension between the United States and China.
Moving forward, the research note said production of the 2019 iPhones, presumably to sell as the iPhone 11, the iPhone 11 Max and the iPhone 11R, is on track for a "product ramp schedule." This is like saying that amidst the existing challenges, Apple is bent on following the development and production calendar set for the 2019 iPhones.
It is highly unlikely that the 2019 iPhone release date will be delayed notwithstanding the internal realignments and the perceived souring relation by the U.S. with China, where Apple manufactures the bulk of its flagship iOS smartphone.
