WSJ: Apple is Cutting iPhone X Production Due to Weaker Than Expected Demand

WSJ: Apple is Cutting iPhone X Production Due to Weaker Than Expected Demand

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The WSJ reports that Apple is cutting iPhone X production due to weaker than expected demand.

Corroborating a recent report from Nikkei, the WSJ says Apple plans to make about 20 million iPhone X handsets in 1Q18, down from its planned production of 40 million. Some component orders have been cut by 60%.

“They always do this when things aren’t selling well. It’s a real headache,” a source said.

Apple hasn't responded to the reports but it will announced earnings for the quarter ending December 31st on Thursday. It's expected to announced a sales unit increase of 1.5% for all iPhone devices including the 6,7, and 8 models.

The late launch of the iPhone X without Touch ID and its $1,000 base price are thought to be reasons for the lower than expected demand.

“They need to adjust their attitude to consumers,” said Kylie Huang, a Taiwan-based analyst at Daiwa Capital Markets covering the Apple supply chain. “Consumers are not stupid. People love Apple but they still have limitations.”

It's possible that Apple could still perform well in the quarter to its mix of older generation devices.

“Apple doesn’t need to rely on one model to perform very well to be able to achieve the financial results they are aiming at,” says Canalys analyst Nicole Peng.

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WSJ: Apple is Cutting iPhone X Production Due to Weaker Than Expected Demand

Shawn - February 1, 2018 at 1:13am
Tim Cook is a greedy idiot. Lower the price by $250, the phone will sell like crazy and the big stockpile of cash that Apple has will get bigger. But Tim is an idiot and greedy and would rather cut production.
Really? - February 1, 2018 at 4:22pm
It’s not even that Samsung has been using OLED screens for years and they didn’t charge a grand But apple says the price is that high cause of the screen. Also that the camera is better cause of the dual lens. Yet Samsung has the same or even better camera and they didn’t boost the price. There’s other specs that Samsung has that the iPhone X has so what’s the real reason? Apple just knows that apple sheeps will pay any amount for a new product that another company has. Just say it’s innovative and you got yourself a sale. I have the iPhone X also but I came from the 7.
tdsd - February 1, 2018 at 12:28am
it was too costly to make. samsung was overcharging apple for basically a very ordinary OLED screen that has tint shift. the good OLEDS they save for their own products. so yes, apple oled is inferior to samsung and they were overpaying for it! samsung execs must have been laughing but they are crying now because samsung makes so much money off of apple which can only design a phone and not manufacturer. The crap iPhone sales is hurting Samsung as well. The BIGGEST problem was yes they were very overpriced mediocre products. the iPhone X was not a premium product because it was not a finished product. It wasn't a limited edition product. It was a thrown together product that apple admit that was released a year early and it shows. Socially people who bought iPhone X was made fun of as being apple sheep and wasteful with their money. Previously, the iphone was a status symbol but now the iPhone X meant that you were an idiot. It's amazing how it flipped so fast. I think every iPhone X customer will regret if they haven't regret yet. The good stuff is coming this year 2018. The Customers are showing apple they can't make bullshit devices. The smart apple consumers are forcing apple to put up or shut up. I compare this to automotive manufactures. American brands got to complacent they were making utter rubbish. It took a bankruptcy and bailout to fix them. so for apple it requires rubbish sales and loss in marketshare for a wakeup call that they need to lower their costs AND provide a better premium FINISHED product. the apple sheep is a small herd now.
Chip - January 31, 2018 at 10:17am
Iphone x completely a waste of investment shows that the people is not buying into the hype regardless of the idiots that keep talking about how grate the phone is. Those people should not get no money back and when the iphone price goes down and it will then maybe they can use the rest of money to buy parts of there brains back if its still available. Never buy into the hype in the end you will always loose.
D4xM4Nx - January 31, 2018 at 9:54am
I still love mine, coming from an iPhone 6 it feels like alien tech lol. The notch isn't a huge issue, older iPhones had it much bigger and no one complained. The OLED screen is gorgeous, and it's far less prone to burning than Samsung shit. However it's too overpriced, people didn't find the new features worth it. True that the iPhone X is more a limited edition super smartphone than a regular product.
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