Apple is cutting iPhone X production in half, report says

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Apple has reportedly slashed its production target for the iPhone X by 50 percent following poor holiday sales.

A report published on Monday by Nikkei Asian Review says Apple originally planned to make 40 million phones between January and March this year, but will now only produce 20 million in that same time frame. The significant reduction is caused by stagnant sales in major markets, including Asia, Europe, and the United States.

The reason for its sluggish adoption comes as no surprise. The report cites the phone’s $1,000 price tag for why it has failed to catch on. It claims the phone costs so much because of Apple’s reliance on Samsung OLED panels, which run from $120 to $130 per panel.

The news comes a week after reports of the iPhone X’s predicted demise shook the smartphone world. Reliable Apple analyst Ming-Chi Kuo of KGI Securities claims Apple will discontinue its 10th-anniversary device upon the unveiling of its successors, instead of offering it at a lower price. An earlier report from KGI said Apple will only ship 18 million units in the first quarter of 2018, significantly lower than initially expected.

The buildup to the highly anticipated flagship phone suggested it would sell well, but its outlook has taken a gloomy turn in recent months. Within hours of going on sale, iPhone X shipments were delayed five to six weeks. Demand was so great, it caused the App Store to shut down for up to 10 minutes.

But that initial peak interest appears to have dropped significantly once hardcore Apple fans were replaced by mainstream consumers. We know the iPhone 8, iPhone 8 Plus, and iPhone X hold a smaller share of overall sales compared to newly released phones in previous years.

More than two-thirds of all Apple sales come from the iPhone. Taking reports of poor iPhone 8 demand into account, Apple could be in serious trouble.

The Daily Dot has reached out to Apple but hasn’t heard back as of this posting.

Phillip Tracy

Phillip Tracy

Phillip Tracy is a former technology staff writer at the Daily Dot. He's an expert on smartphones, social media trends, and gadgets. He previously reported on IoT and telecom for RCR Wireless News and contributed to NewBay Media magazine. He now writes for Laptop magazine.