comscore Slow response forces Apple to halve iPhone X production
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Slow response forces Apple to halve iPhone X production

Apple has slashed iPhone X production from 40 million units to 20 million units.

  • Published: January 30, 2018 2:30 PM IST
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Slower-than-expected sales have forced Apple to slash iPhone X production by half for the January-March period — to 20 million units from the earlier planned 40 million units, the media reported. According to a report in Nikkei Asian Review on Tuesday, the Cupertino-based giant has notified suppliers that it had decided to cut the iPhone manufacturing by 50 percent owing to slower-than-expected sales in Europe, the US and China. Also Read - Apple to stop charging App Store fees from Facebook till 31 December

“With components deliveries delayed, Apple had struggled to keep up with demand for the iPhone X immediately after its launch. Rising inventories appear to have pushed the company to sharply slow production,” the report added. “Looking forward, the lacklustre sales could result in a delay to the company’s plans to introduce OLED screens in other iPhone models,” the report noted. Also Read - Google will update Play Store guidelines, crack down on companies bypassing 30% fee

South Korean giant Samsung that currently provides OLED panels for $999 iPhone X will also be hit as its orders will also be affected. The production cuts for iPhone X, said the report, will have a domino effect on manufacturers that supply high-performance components for the handset, acewith the combined impact expected to run into billions of dollars for the January-March quarter alone”. Apple’s 10th-anniversary “super-premium” smartphone went on sale across the globe on November 3. Also Read - Apple iOS 14.0.1, iPadOS 14.0.1, watchOS 7.0.1 and more begins rolling out to supported devices

Earlier this month, an analyst associated with Taiwanese business group KGI Securities said that more sluggish-than-expected response may lead Apple to discontinue the first-generation iPhone X around mid-2018 as the second-generation model is set for launch later this year.

According to Ming-Chi Kuo, the most famous analyst with KGI Securities when it comes to Apple, the Cupertino-based giant will not sell iPhone X at lower price as it will hurt its other products in the lower-priced premium segment.

Kuo estimated that Apple would ship about 18 million iPhone X units in the January-March quarter in 2018. “We expect iPhone X will go to end of life (EOL) around mid-2018 and that total life cycle shipments will be around 62 million units, lower than our previous forecast of 80 million units,” the analyst said.

Apple shipped 29 million iPhone X units in the fourth quarter of 2017, Singapore-based market research firm Canalys said, adding that this made iPhone X the world’s best-shipping smartphone model over the holiday season. “The iPhone X performance is impressive for a device priced at $999, but it is slightly below industry expectations,” said Ben Stanton, analyst at Canalys.

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  • Published Date: January 30, 2018 2:30 PM IST


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