Apple cuts production on new iPhone models: report

Apple has slashed production orders for all three of its newest iPhone models, The Wall Street Journal reports.

People familiar with the situational told the Journal that unexpectedly low demand led the company to cut production. The move reportedly frustrated executive Apple suppliers and workers.

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Lower-than-expected demand has hit the iPhone XR particularly hard, causing Apple to slash its production plan by up to a third of about 70 million units in late October, people familiar with the matter told the Journal.

Over the last week, the company told several suppliers to cut the production plan for the iPhone XR again.

Apple declined to comment to the Journal. The Hill has reached out to confirm the report with the company.

Last week, iPhone suppliers such as Qorvo Inc., Lumentum Holdings Inc. and Japan Display Inc. cut quarterly profit estimates, citing a drop in orders that had been placed previously by a large customer.

Apple was not identified in the announcement, but makes up a third to half of those companies' revenue, the Journal reports, citing filings and estimates.

Shares for the three producers dropped and Apple stock is down by over 10 percent since it reported earnings on Nov. 1.