Apple Reduces Sales Forecast for HomePod, Cuts Supplier Orders: REPORT

A new supply chain report from Taiwan reinforces a recent story from Bloomberg stating Apple HomePod sales have been disappointing for the Cupertino company.

A new report from China Times, citing supply chain sources, claims that Apple is already reducing its sales forecast for the HomePod, and is cutting orders for the next few months.

The report states that Apple has cut monthly production from 500,000 units to 200,000 units. The China Times story cites Inventec Assembly Factory, upper lid module foundry Ruiyi, cable supplier Liangwei, and soft board supplier Taichi as suppliers affected by the move.

Interestingly, the report does state that Apple may be currently developing a cheaper HomePod model for launch later this year. However, the report predicts that Apple wouldn’t launch a revised or cheaper HomePod until at least the fourth quarter of this year.

We’ll probably never know exactly how well the HomePod is selling, since Apple said that it’s the spokesman in its “Other Products” category in its quarterly reports along with the Apple Watch, Apple TV, AirPods, Beats, iPod, and more.

The China Times story is in line with a Bloomberg report Wednesday, which specifically cited the cut to Inventec, also in March.