Apple halves production target for iPhone X after slow sales
30 January, 2018, 01:43 | Author: Edward Snyder
Other reports recently surfaced indicating that Apple plans to discontinue the iPhone X this year amid the launch of a newer, larger OLED phone, and a corresponding smaller, lower priced LCD model with edge-to-edge glass.
Apple's stock dipped slightly in premarket trading Monday after a report said it would halve production for the iPhone X in the first three months of 2018.
There is no mention of the where that information is coming from, only that Apple had original meant to sell more than 40 million iPhone X devices in the first quarter.
The tech giant told suppliers it would cut its production target for the phone to 20 million units, following slower-than-expected sales in the year-end holiday shopping period in Europe, the USA and China, the Nikkei reported Monday.
The report added to growing concerns about weak sales of the US$999 phone, making investors jittery about the company's financial outlook when it reports first-quarter results on Thursday. He also cut his full year iPhone unit forecast 11 percent to 220 million units. Apple depends on foreign markets to drive more than two-thirds of total iPhone sales. There are indications that the original iPhone X could reach its end of life around mid-2018 and this effective means that new iPhones could be in pipeline.
"Our checks indicate a 6.5-inch smartphone is on the horizon for Apple in mid-2018", he told The Sun. Additionally both the iPhone X Plus and the 5.6 inch model will have 4GB of RAM, more than the 2017 iPhone X which only has 3GB.
Nikkei also notes that the inventory for the iPhone X is "starting to rise", after a period of shortages.
Adding to the concerns, Verizon Communications said last week its postpaid device activations were lower than previous year as people were keeping phones longer. And finally, it will be using an LCD screen instead of OLED.
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