Owing to the poor holiday sales of the iPhone X, it has been reported that Apple will be slashing the production of the bezel-less handset from 40 million units to 20 million units for the first quarter of this year, marking a 50 percent slash in the process. Supply chain sources claim that this is taking place thanks to the poor sales performance of the smartphone, but an Apple supplier believes that the report may have been exaggerated.
Apple Supplier Murata Claims That Its Component Orders Have Yet to Be Reduced for the iPhone X
Despite the reported production slashing of the iPhone X, Apple has been rumored to continue selling the smartphone through 2019 most likely so that it is able to generate additional revenue and increase market share to make up for all the R&D sessions that took place in making the $999 device. Murata, an Apple supplier states that it has yet to reduce its component orders, meaning that the report stated by these supply chain sources might have been exaggerated a little bit.
It is also possible that this particular supplier is going to be updated about the production cut later down the road since Apple has formed a habit of partnering with several component manufacturers to command better pricing per smartphone part and is yet to update all of them.
Yoshitaka Fujita, Vice Chairman of Murata, says the following when he was asked about the report.
“Our understanding is that it is not that great.”
If the production cut of the iPhone X is indeed taking place, it is because Apple wants to focus on the upcoming iPhone family, which will comprise up of the iPhone X successor and the 6.5-inch iPhone X Plus. In addition, a full-screen iPhone with LCD display has also been rumored to get announced during the Apple keynote, which will take place later in the year.
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News Source: Reuters
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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