Apple reportedly slashes iPhone X orders in half due to slow sales

Apple reportedly slashes iPhone X orders in half due to slow sales

Apple reportedly slashes iPhone X orders in half due to slow sales

The tech giant told suppliers it would cut its production target for the phone to 20 million units, following slower-than-expected sales in the year-end holiday shopping period in Europe, the US and China, the Nikkei reported Monday.

Those analyses were corroborated this morning in a fresh report from the well-connected Nikkei Asian Review, which most notably tells us of Apple's latest decision to slash iPhone X production by a whopping 50 percent during the fiscal first quarter - cutting its targets from 40 million units in the to around 20 million.

The reason for its sluggish adoption comes as no surprise.

For now, many investors appear to be focusing on analyst comments and media reports that Apple is dramatically reducing its iPhone X orders with its suppliers. In this rumored scenario, Apple would release three phones in the fall - a successor to the iPhone X with a larger 6.5-inch screen, a revamped version of the 5.8-inch iPhone X, and a 6.1-inch phone with compromises like an LCD screen to keep the price in the range of the $699 iPhone 8.

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. It will start slowing production soon. It will also be a setback for Samsung's display business, which has enjoyed strong performance so far.

"After the first wave of demand has been fulfilled, the market now worries that the high price of the iPhone X may weaken demand in the first quarter", Zhang wrote. So the Nikkei's negative spin today claiming that there was "disappointing holiday-season" sales for the iPhone X, instantly discredits anything that they're claiming.

In light of Apple's troubles selling an OLED-equipped smartphone, rivals in China and elsewhere could reconsider plans to adopt the technology in new products.

The new details from Kuo largely focus on the distribution and manufacturing of the new 6.1 inch phone across Pegatron, Foxconn and Wistron assemblers, adding that Japan Display will supply the majority (70%) of LCD panels for the phone and that apparently it will use the company's six-inch Full Active LCDs that only need a 0.5mm bezel on the edges.

There have been reports lately about Apple adding two new devices to the iPhone X lineup on top of the acclaimed iPhone X last came out previous year. The quarterly results will be announced Thursday, U.S. time.

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