Apple reducing iPhone X production to 8 million units in Q2 2018: Report

By Digit NewsDesk | Published on 28 Apr 2018
Apple reducing iPhone X production to 8 million units in Q2 2018: Report
HIGHLIGHTS

The Apple iPhone X has set precedent for the notch design in bezel-less smartphones, but has failed to pick up demand owing to its high price tag.

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Apple is reportedly reducing production volume of its present flagship, the iPhone X, by yet another big margin. A Fast Company report quoting supply chain sources state that after reducing production volume by almost half to 20 million units in Q1 2018, Apple is now reducing total production volume of the iPhone X to 8 million units in Q2 2018. The primary reason for this is the lack in demand of the new iPhone, majorly stemming from its hefty price tag.

The Apple iPhone X has been the first major change to the iPhone since adopting the new design with the iPhone 6. It was appreciated for its overall appeal, but lost out on picking up sales numbers because of its price. Globally, the Apple iPhone X is priced onward of $999, while in India, it premieres at Rs. 89,000, making it one of the most expensive mainstream mobile devices that one can buy. Despite the steep pricing, a total of 29 million units were reported to have shipped during the holiday season, leading to Apple CEO Tim Cook calling it the best-selling iPhone for this particular quarter, compared year-wise. But, sales have significantly dropped since then, and with no sign of the demand picking up, it is further stated to be reduced.

Analyst Ming-Chi Kuo had predicted that the 2017 Apple iPhone X will be discontinued once new models are launched this year. Apple is expected to launch three new iPhones this year as well - a 6.1-inch iPhone with LCD display, a 5.8-inch OLED iPhone and a 6.5-inch OLED iPhone. The OLED models are expected to carry the iPhone X's designs forward, and Apple may be reducing production of the present generation iPhone X to optimise supply volumes and eventually make way for a new generation of devices.

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