Apple is not only considering cutting down production of its flagship $1000 iPhone X, but it has already notified suppliers of the decision, a new report from Nikkei claims. The reason being the phone’s weak sales during the holiday period.
The report states the iPhone X could not manage to meet expectations in markets such as the US, China and Europe. And in light of that, Apple is readjusting supply output from more than 40 million units to just half.
This is not the first time we are hearing report about iPhone X’s less-than-expected sales. Earlier this month, KGI securities’ analyst Ming-Chi Kuo stated in his report that Apple might end iPhone X’s production this year. It would not have been the first time Apple ended production after just one year, but shutting down production of a premium flagship phone within a year of its release was a sign that perhaps the iPhone X could not meet Apple’s sales expectations. However, Ming-Chi Kuo clarified his statement by citing reason that Apple is expected to release three iPhones this year, including a 6.1” LCD based iPhone.
If Apple went through the tradition of discounting the older iPhone with the launch of its successor, the OLED iPhone X carries the potential to cannibalize sales of the 6.1” LCD iPhone, which is expected to sell between $649 – $749, according to Kuo’s prediction.
There are still months left between us and the next iPhone release, and realistically, anything can happen, Apple might change their plan and not release three iPhones. iPhone X’s $999 price tag has certainly been its downside, so it’s not hard to believe sales failed to meet expectations.
UPDATE: Wall Street Journal is also reporting Apple’s plan to cut iPhone’s production for the current quarter. This marks the third report from a trusted source on the matter. We will get to know more once Apple releases financial earnings on Thursday.
