Recent failures by Apple not only affect Apple.

The company Foxconn, which is the traditional largest iPhone assembler, has announced that it expects “a tough year”. Because of the low sales of the new iPhone models, the company will reduce its expenses by $2.9 billion and fired 10% of employees that are not associated with the production process.

According to Bloomberg, Foxconn challenges caused by low demand for new iPhone models. Similar problems due to the low sales of the iPhone XS, Max XS iPhone and iPhone XR appeared in four other major Apple suppliers. However, they will suffer less than Foxconn, as Taiwan-based company the largest share of revenues accounts for the Assembly of the iPhone.

The reasons that sales of the new iPhone were lower than expected was the poor demand for smartphones in China and emerging countries, including Russia and India. Consumers are not interested in super expensive iPhone that in 2018, has risen even more due to the fall in local currencies. So, in Russia, the new iPhone became more expensive last year’s models to 8 thousand rubles. And in Brazil the price increase was about 15 thousand rubles.

Each publication of the leading media of low demand for new smartphones Apple resonates with investors. Over the last eighteen months, Apple shares have lost more than 20% of the cost. Many experts believe that in the near future Apple may become most valuable company in the world. However, other tech giants also have the problem of Amazon and Google, which are the first contenders for the title of most expensive companies in the world that fall in the same way.

Source: Bloomberg.

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