Apple set to halve Q1 iPhone X production target

Jan 30, 2018, 01:17
Apple set to halve Q1 iPhone X production target

That's going to consume a lot of Apple's internal resources, Kuo says - so much so that an iPhone SE successor appears to be the odd phone out.

The report goes on to cite "slower than expected sales" during the important holiday shopping quarter, which, in combination with Apple's eleventh-hour attempts to truly ramp up iPhone X production, has merely resulted in inventories of the handset "swelling up".

We've heard about Apple's planned iPhone triple threat before, both from Kuo and other reports coming out of Asia. At the end of December, analyst Zhang Bin from Sinolink Securities Co. Kuo is claiming that the iPhone X will still have a $1,000USD price point with the iPhone X Plus being higher, most likely around the $1,200 to $1,350 range.

"The U.S. tech giant notified suppliers that it had chose 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", reads the report, quoting anonymous sources within Apple's supply chain.

A recent Apple leak suggested the firm could cancel the iPhone X.

A survey of people planning to buy the iPhone showed that the percentage of them looking to buy the iPhone X has dropped to 37 percent from 43 percent in an earlier survey, UBS analysts wrote in a note on Monday. And finally, it will be using an LCD screen instead of OLED. Also, a 6.1-inch iPhone is hinted to be released.

The speculation is that the 6.1 inch phone will essentially be a scaled down iPhone X. However, its screen will not be an OLED, but rather an LCD. With all the problems that have hounded the company in relation to the performance of its older iPhone models, there have also been talks that the tech giant will cease production of its current flagship model, the iPhone X.

Reuters could not immediately reach Apple's USA headquarters for comment outside regular business hours.

According to the report, Apple has increased margins for exclusive Apple franchise stores in India to 5.7 per cent from 4.5 per cent.