Apple's Is Reportedly Cutting Its iPhone X Production Target By 50%

Delia Watkins
January 30, 2018

The U.S. tech giant notified suppliers that it had made a decision to cut the first-quarter production target to around 20 million units, in light of slower-than-expected sales in the year-end holiday shopping season in key markets such as Europe, the U.S. and China.

The new iPhone X, iPhone X Plus, and lower-priced 6.1-inch iPhone are expected to launch this year. The OLED models, on the other hand, will feature a 6.0 to 6.1-inch screen and another with a 6.4 to 6.5-inch display.

Three senior industry executives said the iPhone maker has also increased margins for the exclusive franchise-run Apple stores in the country from 4-5% to 5-7% to build the offline channel and prepare the market for company-owned stores, which are likely to open sometime in the 2020-21calendar years, they said.

Both iPhone X models will have 4GB of RAM while the 6.1-inch iPhone will feature a 3GB of RAM. Additionally the 6.1 inch phone will have a rectangular shaped one-cell battery, this will be 8.5% larger than the battery in the current iPhone X. What is perhaps the most exciting for a number of people is that the phones are predicted to have a lower starting price between $700 and $800, for the USA market at least. The South Korean giant is now the only company that can guarantee a steady supply of the screens.

A report today claims that Apple is cutting its iPhone X production targets in half in response to 'disappointing holiday season sales'.

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An analyst says the new model's disappointing sales could lead to the phone being cancelled - with production stopping as soon as this summer. It is expected to be powered by 2850-2950mAh battery. It will also be a setback for Samsung's display business, which has enjoyed strong performance so far. Analysts now expect the average selling price for the iPhone segment to hit $757 for both the December and March quarters-more than $100 above the average for the last four periods.

'Apple earnings should handily beat December quarter expectations, but March guidance could moderately disappoint, ' UBS analysts said.

Nikkei also notes that the inventory for the iPhone X is "starting to rise", after a period of shortages.

Much has been said about Apple's lineup of smartphones for 2018. Meanwhile, a DigiTimes report said that the company is gearing up for the release of not two, but four new next-generation iPhone models. Instead of using a steel frame, Apple would switch to an aluminum chassis for the LCD iPhone.

Kuo's analysis seems to be heavily based on Apple's rollout of the iPhone 8, 8 Plus and X in 2017. And higher prices can help the company meet revenue growth targets even if unit sales are weaker. The quarterly results will be announced Thursday, U.S. time.

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