Apple Cutting iPhone X Production to Half in Q1 2018

iPhone X model number

Apple will reportedly be reducing its iPhone X production to half from its original figure of 40 million for the period starting from January 2018.

The Cupertino company has been forced to take this move after less than anticipated sales of the iPhone X during the holiday season in the United States, China, and Europe. The report cites that the poor sales could also lead Apple to defer its plans of using OLED panels across its entire iPhone lineup for 2018.

The U.S. tech giant notified suppliers that it had decided to cut the target for the period 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 reduction in iPhone X production will have a negative impact on the revenue of Apple’s component vendors. For other models like the iPhone 8, iPhone 8 Plus, and iPhone 7, Apple has a combined production target of 30 million.

The company is now looking to use LCD panels on the majority of the iPhone variants it plans on launching later this year. Reports so far point to Apple unveiling three new iPhones in 2018. Out of this, 2 of them will sport an OLED display and one of them will feature an LCD display. This includes a 5.8-inch and 6.5-inch variant with OLED panels and a lower priced 6.1-inch model with LCD display. However, a recent report from DigiTimes claimed otherwise saying that Apple is now looking to use LCD panels on two variants and OLED panel on one. That report claimed that only the 6.5-inch iPhone will feature an OLED panel while the other two variants would make use of an LCD display.

Our Take

There’s no smoke without fire, and it looks like iPhone X sales have indeed been lower than what analysts and even Apple expected. And this despite the company ensuring the handset was widely available in the United States, Europe, China, and other major markets before the holiday season. Its possible that the high price, lack of Touch ID, and other innovative features led users to skip the iPhone X this year. Despite the lower than anticipated sales, Apple is still expected to post a record-breaking iPhone sales during Q4 2017.

[Via Nikkei]