Another report has popped up that Apple will cut its iPhone X production in half for the first three months of 2018. That means instead of producing 40 million units, the company will only produce 20 million units.
Nikkei’s report on Monday about weak iPhone X sells has caused investors to worry about Apple’s first quarter results which is expected to be revealed on Thursday. Apple’s shares have fallen to 1.6 percent which is the lowest level in 2018 and has caused the company’s value to depreciate by $14 billion.
While Apple is said to drop the iPhone X units to 20 million units, the production target for the iPhone 8, 8 Plus, and the iPhone 7 will remain at 30 million units for the first quarter of this year.
Why is Apple cutting the production of the iPhone X? According to most reports, Apple’s iPhone X has not been performing as expected. Word has it that the cut was due to the slow sales during the holiday shopping season in countries such as the United States, Europe, and China.
The iPhone X is Apple’s first iPhone to sport a new design and features since the iPhone 6. The 5.8-inch OLED iPhone features a vertical dual camera, facial recognition, wireless charging, and animoji but has a hefty price tag of $999. There are people who think the price of the iPhone X has deterred many consumers from purchasing the device which has ultimately hurt the device’s sales.
Atlantic Equities analyst James Cordwell has been quoted saying, “This was supposed to be the supercycle year and if Apple hasn’t been able to drive substantial unit growth this year, then that makes you a little cautious on future iPhone cycles.”
We’ll see how well Apple’s iPhone X did when the company announces its results in a coupe of days.
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