Apple to halve iPhone X production owing to 'disappointing' sales
According to a report by Tokyo Stock Exchange index Nikkei, Apple is looking to cut down its production targets for the iPhone X by half owing to "disappointing holiday season sales". Starting January, Apple will halve its initial production target of 40 million iPhone X units for the first quarter of 2018. Here's more on the consequences of the move.
Reasons for the iPhone X's relative unpopularity
The relative unpopularity of the iPhone X largely boils down to its $999 price tag. The iPhone X is Apple's first phone with an OLED display, and the high price tag of the handset is largely resultant of the high cost of OLED panels, which are made solely by Samsung Electronics. Moreover, Apple failed to deliver any significant groundbreaking technologies despite the hefty price.
Manufacturers in Apple's supply-chain will be hard hit
The planned cut in the production target for the iPhone X is expected to have a domino effect on manufacturers and suppliers which supply high-end components for Apple's flagship smartphone. It is estimated that the loss in revenue for these manufacturers will be in billions just in the three month period from January to March.
Apple's plans to introduce OLED iPhones might take back seat
Apple's reported plans to introduce two new OLED-screen iPhones in 2018 might take a backseat if the iPhone X's lacklustre performance is to be taken into account. Immediately after the launch of the iPhone X, Apple had struggled to keep up with demand owing to delayed component deliveries. Coupled with the iPhone X's performance, Apple might want to reconsider its plans for OLED iPhones.
Apple will maintain production targets for iPhones 7, 8 ranges
Earlier, Digitimes had reported that Apple had asked suppliers to lower production for the iPhone 8 and 8 Plus for the first quarter of 2018. However, Nikkei's report now says that Apple is expected to maintain its existing production target of 30 million units across its iPhone 7/7Plus and iPhone 8/8Plus ranges.
