iPhone X Production Being Slashed by Half Due to Disappointing Sales Performance, According to Supply Chain
Following the disappointing sales run of the iPhone X, supply chain sources claim that Apple is ordering the production of the bezel-less flagship to be cut in half. This move could also signify that the company might be shifting its focus towards the newest series of phones. Keep in mind that this latest development does not state that Apple is going be getting rid of the iPhone X completely.
iPhone X Production Target Cut to 20 Million Units - Suppliers to Brace Themselves for the Scaling Down of Revenue
According to Nikkei, supply chain sources have commented on the poor sales performance of the iPhone X, which has lead to the volume reduction of the iPhone X. Where it was expected that the production would be aimed at 40 million units for the first quarter of this year, it has now been cut to 20 million.
“Apple will halve its production target for the iPhone X in the three-month period from January from the figure of over 40 million units envisaged at the time of its release in November.
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.”
Naturally, Apple alone is not going to be feeling this weight because its suppliers are going to be bracing for a mammoth revenue hit.
“The production cuts for the X will have a domino effect on manufacturers that have supplied high-performance components for the handset, with the combined impact expected to run into billions of dollars.”
Still, this does not mean that the iPhone X is going to be cut off from the production belts. As we stated in our previous rumor, the smartphone is expected to be sold through 2019.
At the same time, the unit production cut could also mean that Apple is going to be focusing its resources on the release of the iPhone X successor and the iPhone X Plus, which could feature 4GB of RAM and larger batteries.
News Source: Nikkei