Lower-than-expected demand for Apple's new iPhones and the company's decision to offer more models have created turmoil along its supply chain and made it harder for Apple to predict the number of components and phones it needs, writes The Wall Street Journal (Nov. 20, 2018). Recently, Apple slashed production orders for all 3 of the iPhone models it unveiled in September, frustrating Apple suppliers and workers who assemble the phones and their components. The slowdown has ripped throughout Apple's supply chain. Big suppliers of iPhone components, including Qorvo, Lumentum, and Japan Display, cut their quarterly profit estimates, implying a reduction in previously placed orders from Apple, which accounts for 1/3-1/2 of their revenue. At Foxconn , Apple's largest iPhone assembler, thousands of workers have voluntarily left its Chinese plants earlier than they intended after Foxconn cut overtime hours that typically are available. (Many workers rely on overtime as a major source of income). Hundreds of suppliers built their businesses on the back of smartphones, and none benefited more than those providing components for Apple. But the iPhone production cuts have reignited frustration among suppliers and raised worries about Apple's ability to forecast demand since it started releasing 3 flagship models instead of 2 last year. Apple also continues to sell some older models in its stores, further complicating forecasting. The company's suppliers have been rattled before. The iPhone 6, introduced in 2014, sold better than Apple's expectations, and suppliers scrambled to meet increased orders. The following year, demand for the iPhone 6s fell short of forecasts, leaving suppliers to grapple with excess inventories and underused production capacity. Last year, many suppliers were hurt by Apple's excessively optimistic production forecast for the iPhone X, which it later slashed by some 20 million units for the 2018 first quarter. While making components for 200 million-plus iPhones remains a tremendous business for suppliers, most relied on the growth in iPhones sold to boost their profits and pay for huge capital expenditures. "The freeway of Apple suppliers is littered with roadkill," said one industry analyst. Classroom discussion questions: 1. What forecasting techniques can be used by Apple to predict demand for a new phone? 2. What are the advantages and disadvantages of being an iPhone supplier