iPhone assembler Foxconn plans to cut $2.9bn in costs

Foxconn Technology Group, the biggest assembler of Apple iPhones said it plans to slash $2.9bn in costs in 2019 as it faces a “very difficult and competitive year”, Bloomberg reported on Tuesday.

In order to reach its target, the iPhone supplier plans to eliminate around 10% of non-technical staff.

Specifically, the part of Foxconn that oversees iPhone assembly will need to reduce costs by 6bn yuan, or about a third of the headline 20bn yuan figure.

The report follows another of a recent slowdown in orders at Apple, which the Journal linked to weak demand for the iPhone XS and iPhone XR

Apple's sales of iPhones have been flat over the past year, but over that same time span the manufacturer's revenues and profits have grown by 30% thanks to the increased proportion of more expensive iPhone models in its sales mix.

Apple Inc shares, which have fallen over 23.7% since hitting a record closing high of $232.07 on 3 October, hit their lowest level since May on Tuesday after slumping by a further 4.78%.