Apple warns suppliers that iPhone demand is falling - report

Apple CEO: I use my phone too much
Apple CEO: I use my phone too much

Apple may be worried that its next iPhones won't be as popular as its last.

The company told suppliers to to manufacture 20% fewer components for its upcoming iPhones, according to Nikkei. That could signal it expects waning enthusiasm for its flagship smartphone.

Apple's (AAPL) stock price fell as much as nearly 2% in Friday's trading, pulling the Nasdaq lower by 0.6%.

A year ago, Apple told suppliers to prepare for shipments of 100 million iPhone 8, iPhone 8 Plus and iPhone X devices. This year, Apple is taking a "cautious approach," telling suppliers to prepare for 80 million iPhones, Nikkei reported.

Apple is preparing to introduce three new iPhones in the fall, according to the report. All will reportedly have FaceID cameras. The higher-end models will have bright OLED displays, similar to the iPhone X. The budget model will have an LCD display.

Related: Apple faces Wall Street 'panic' over iPhone

Investors have been worried for a while now that iPhone sales are flattening. Apple shipped 52.2 million iPhones during the first three months of 2018, an increase of just 3% compared to the same period a year earlier. It was expected to sell 53 million iPhones.

Apple's stock is up 12% since the beginning of the year.

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