Apple iPhone X and its 00 price tag have not proved popular and the company could cut down production in Q2, 2018 says a new report.
Apple plans to slow down iPhone X production to only 8 million units in Q2 2018. The reduced iPhone X production plans have been reported by Fast Company, which said the disappointing sales of the iPhone X in Q1 was the reason for Apple slashing production. This is not the first time a report has talked about Apple reducing production for the iPhone X.
The report in Fast Company is quoting supply chain sources for this decline in production of the iPhone X. It also notes that the $1000 price tag of the flagship iPhone could be a deterrent to consumers, which has resulted in lower sales. It was previously reported that Apple was expected to cut down on iPhone X production for Q2 and Q3 2018. This was suggested by Nikkei given how demand slowed down in the last quarter of 2017. Previously analysts had said that Apple iPhone X production was halved to 20 million units for the first quarter for 2018 (which would be Jan-March period). Now it does not look like the iPhone X sales are picking up, which could explain further cut downs.
When it comes to iPhone X, noted Apple analyst KGI Securities’ Ming Chi-Kuo believes the iPhone X will be discontinued in the year, as Apple looks to expand the X series. He had predicted that after iPhone X for 2018 launches, Apple will no longer produce the 2017 variant. Later in 2018, Apple is expected to launch a 5.8-inch OLED display iPhone, a 6.5-inch OLED display iPhone, as well as a 6.1-inch LCD screen iPhone. This line-up is expected to be priced from $550 and above.
Apple’s iPhone X had shipped 29 million units during 2017’s holiday season, and Tim Cook had called it the best selling iPhone for the quarter. However with the crucial holiday season over, it looks like the iPhone X is facing a slump in demand. At the end of the first quarter results, he had said the iPhone X has surpassed expectations and was the company’s top-selling iPhone every week since it shipped in November.
Meanwhile, the Fast Company report also points out that Apple suppliers Samsung Display (which supplies the OLED for iPhone X) and and iPhone X chip supplier TSMC have also warned of slowing demands, which is seen as further indication that the Apple iPhone X not proved to be as successful as it was expected.