CCTV Script 20/11/18

— This is the script of CNBC's news report for China's CCTV on November 20, 2018, Tuesday.

Traditionally, Thanksgiving at the end of the year and the shopping holiday at Christmas are important times for apple to drive sales, but there may be an afterclap this year, as words spell that apple is slashing orders for its phones due to poor sales prospects

And the orders that have been cut may include all of the new phones the company released in September, the iPhone XS iPhone XS Max, and the iPhone XR with the largest reduced orders, its 70 million orders will cut by a third

We know that apple announced in the latest earnings that from the next quarter it will not release the product sales information. However, through the past few quarters of sales, we can see the general market demand for apple mobile phone and favors, last year, in the fourth quarter, apple sold 47 million phones, apple phone sales back to the 47 million in the 4th quarter this year, after experienced 2 consecutive quarters falling. But the apple official said the short term sales data is meaningless.

But voices in the market believe that on the one hand, apple will definitely see a slowly growing trend or even reverse growing, on the other hand, its high-end strategy pushed the price above $1000, causing the market demand dive, and that pressure apple's suppliers

Over the past three weeks, three of its main suppliers have experienced idling capacity and inventory backlogs as apple cut production orders, according to the Wall Street journal

Among them, shares in LUMENTUM, the largest supplier of 3D sensors to iPhone, have plunged about 43 percent from their peak at the end of August

Meanwhile, Japan's Nikkei reported that apple had told phone assemblers FOXCONN and PEGATRON to suspend plans to add a special line to the iPhone XR, sending PEGATRON'S shares down more than 20 percent since the end of August

As a result, lower than expected demand for new iPhone and more models on the market have further disrupted the supply chain data and made it more difficult to predict apple's sales performance after the company stopped reporting sales. However, it is clear that market confidence is very fragile, and many investment Banks have lowered their outlook for apple

Apple fell another close to 4 percent in overnight trading, sending its shares down nearly 20 percent from their recent peak on Oct. 3, and just one step away from officially falling into a bear market

And that drags down the overall mood of the stock market, triggering an overall decline in the technology sector, bringing the entire NASDAQ composite down more than 3 percent, and we'll keep an eye on this issue.