Apple said to be cutting iPhone X production in half due to slow sales

Posted:
in iPhone edited January 2018
Apple has reportedly told suppliers that it's dropping March-quarter iPhone X production from the more than 40 million it predicted to about 20 million, delivering a multi-billion dollar impact to the supply chain.




The phone saw "slower-than-expected" holiday sales in major markets including the U.S., China, and Europe, Nikkei said on Monday. Apple typically cuts production post-holidays, and at present it is unclear if the report is accurate as it is unsourced, or if it is so, how it compares to other seasonal cuts.

The company is allegedly keeping a combined production target of 30 million for all other current iPhone models, such as the 7 and 8.

Though it's uncertain what would have hurt iPhone X demand, the most likely culprit is price. The device is the most expensive iPhone ever, starting at $999 for a 64-gigabyte model. A 256-gigabyte version is $1,149, more expensive than some Macs.

Much of its cost can be chalked up to an edge-to-edge, 5.8-inch OLED display, which is supplied solely by Samsung -- the only company able to manufacture on the scale Apple needs. Other suppliers like LG are eventually expected to provide OLED panels, but most likely for the X's successors.

The X also incorporates 3D facial recognition sensors used for features like Face ID and animoji. Those components are difficult to make, and in fact may be why the product launched only in November and in low numbers. Production has caught up relatively rapidly though, since in the U.S, the phone is now available immediately online and at retail.

Another January, another misleading iPhone supply cuts story from Nikkei
Apple supplier Murata casts doubt on claims of lowered iPhone X production
WSJ jumps on iPhone X production cut story, adds new fictions
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Comments

  • Reply 1 of 73
    If they bumped the storage in the units to 256 and 512 gig, and lowered the price by a $100 i think the X phone would be far more appealing 
    vukasikajbdragonschlacksirlance99
  • Reply 2 of 73
    No one has a clue. 

    End of story. 
    rogifan_newmike1StrangeDaysbobrooronnsphericdws-2GG1fotoformatmavemufc
  • Reply 3 of 73
    Sounds like fake news.
    mike1yojimbo007
  • Reply 4 of 73
    So Apple is going to sell about 50 million iPhones combined, which is typical of Q2 in recent years. There is nothing to suggest that this is LOWER than usual numbers. The so-called Analysts imagined it to be 40 million iPhone X out of 50 million overall, which was never the expectation. Yet another FUD, aimed at reducing the Apple's share price, just before the FACTs come out in couple of days.
    benjwrimike1ronnmagman1979jony0
  • Reply 5 of 73
    wood1208wood1208 Posts: 1,813member
    People are not upgrading the phones same way as in past and lower priced Chinese phone manufacturers putting pressure on Apple, Samsung, etc.
    vukasika
  • Reply 6 of 73
    The price is steep. I was quite keen on replacing my 6. But the price put me off, and I thought I wait for the iPhone X 2, with all the usual refinements, and then might buy one without looking at my account balance for a while – and get a new battery for my 6 while waiting.
    jbdragonkitatitwlym
  • Reply 7 of 73
    No one has a clue. 

    End of story. 
    And yet everyone treats them as fact. 🙄
    mike1vukasikaronnmuthuk_vanalingammacxpressAirunJaemagman1979trashman69jony0
  • Reply 8 of 73
    I used to upgrade phones every two years. My three year-old 6S Plus seems to have saturated my needs and wants. I've passed on the 7 and 8 and have no desire to purchase an X. It's not about affordability - its about sensibility.

    I recently realized my iMac and MacBook Pro are over three years old now. I can't even fabricate an excuse to upgrade either one.

    None of these devices are likely to fail anytime soon, so I'm not sure what it will take for Apple to entice me to give them some more money at this time.

    I did order a HomePod, but mostly out of curiosity since I already have several Echos and a plethora of convenient ways to enjoy high-quality audio.
    vukasikaschlack
  • Reply 9 of 73
    Didn’t we do this last week, same bs story from an an outlet that’s routinely wrong about Apple. Funny enough, when Apple releases its quarter results the same oulets release statements on why they aren’t really wrong, it’s just Apples numbers that don’t make sense. How many times are people going to fall for this. 
    edited January 2018 vukasikabwintxRonnnieOronnAirunJaemagman1979jony0
  • Reply 10 of 73
    epicurus said:
    If they bumped the storage in the units to 256 and 512 gig, and lowered the price by a $100 i think the X phone would be far more appealing 
    Why stop there? Why not 512 and 1024 and drop it another $100?  /s

    The job of the X was to test the market by introducing new things at a smaller scale that would have been impossible to implement for the entire line. Mission accomplished. 
    bwintxrob55ronnsphericAirunJaeanantksundaramboltsfan17magman1979jony0
  • Reply 11 of 73
    zroger73 said:
    I used to upgrade phones every two years. My three year-old 6S Plus seems to have saturated my needs and wants. I've passed on the 7 and 8 and have no desire to purchase an X. It's not about affordability - its about sensibility.

    I recently realized my iMac and MacBook Pro are over three years old now. I can't even fabricate an excuse to upgrade either one.

    None of these devices are likely to fail anytime soon, so I'm not sure what it will take for Apple to entice me to give them some more money at this time.

    I did order a HomePod, but mostly out of curiosity since I already have several Echos and a plethora of convenient ways to enjoy high-quality audio.
    100% agreement.  I am typing away on a 4 year old 5k iMac will her good reason to upgrade it.  I do have newest iPad 12.9 which honestly eliminated my need to replace the MacBook Pro which is 4 years old as well.  I gave that to another staff person to use, it still works fine. I have a 7s plus and there just wasn't enough improvement to justify the high price tag on the X and not enough new features on the 8 plus.  If the replacement for the 8 plus next year has the physical appearance of the X, then I might upgrade for the additional screen real estate. I am tempted by the HomePod but I want to see some reviews first.  My "empty-your-pockets-for-the-joy-of-early-adopter-status" days are behind me.
    bluefire1
  • Reply 12 of 73
    larryalarrya Posts: 538member
    epicurus said:
    If they bumped the storage in the units to 256 and 512 gig, and lowered the price by a $100 i think the X phone would be far more appealing 
    Why stop there? Why not 512 and 1024 and drop it another $100?  /s

    The job of the X was to test the market by introducing new things at a smaller scale that would have been impossible to implement for the entire line. Mission accomplished. 
    Where are you getting this?  20 Million units is not a small scale market test. 
    palomine
  • Reply 13 of 73
    As a huge Apple fan, I was incredibly excited about the X. It was hard for me to justify the increase in monthly payments though, so I wasn’t planning on upgrading any time soon. My face lit up when my husband “bought” me one for Christmas by forgoing his upgrade and taking my year old 7 in exchange. That’s true love right there. As much as I was excited for it, and do love almost every aspect of it, I will say that FaceID is incredibly frustrating. It does not work as advertised for a lot of people. Especially for those like me who have narrow eyes. My husband works for a major wireless carrier and said that he takes more calls from people wanting to return the X than any other device. A common complaint he hears is that FaceID doesn’t work. It usually takes me 2-3 tries to make my phone unlock, which makes me warn friends thinking about upgrading. My work phone still has TouchID, and comparing unlocking the two phones throughout the day makes me wish I still had TouchID. I can’t help but to think that the word of mouth from all of these disgruntled users could possibly have a measurable impact on sales. I know I’ve talked a couple of friends out of upgrading, and I highly doubt I’m the only one.
    raulcristianhenrybay
  • Reply 14 of 73

    wood1208 said:
    People are not upgrading the phones same way as in past and lower priced Chinese phone manufacturers putting pressure on Apple, Samsung, etc.
    Er, which Chinese knockoffs are putting pressure on Apple? Pressure on Samsung and the other knockoffs, sure, but considering Apple's numbers that's hard to believe.
    ronn
  • Reply 15 of 73
    Well the stock is down about 1.5% this morning so mission accomplished for someone.
    ronnzroger73malcolmkettering
  • Reply 16 of 73
    larrya said:
    epicurus said:
    If they bumped the storage in the units to 256 and 512 gig, and lowered the price by a $100 i think the X phone would be far more appealing 
    Why stop there? Why not 512 and 1024 and drop it another $100?  /s

    The job of the X was to test the market by introducing new things at a smaller scale that would have been impossible to implement for the entire line. Mission accomplished. 
    Where are you getting this?  20 Million units is not a small scale market test. 
    For what time frame? For a quarter, yes 20MM is small for iPhone.

    https://www.statista.com/statistics/263401/global-apple-iphone-sales-since-3rd-quarter-2007/

    Reader Gruber's thoughts on scale and how the sheer scale of iPhone prevents an experimental roll-out across the board. Thus the X, 8 and 8 Plus:

    https://daringfireball.net/2017/07/speculation_on_new_iphone_pricing

    The X is not scaled out to the entire market of of would-be new-phone buyers. The 8 and 8 Plus have the majority as it becomes cheaper to manufacture Face ID and OLED displays. 
    edited January 2018 ronn
  • Reply 17 of 73
    davendaven Posts: 497member
    wood1208 said:
    People are not upgrading the phones same way as in past and lower priced Chinese phone manufacturers putting pressure on Apple, Samsung, etc.
    A lot of people don't upgrade often because Apple pushes out updated operating systems to most devices keeping them relatively safe and useful. On the one hand it slows device churn. On the other hand, it makes for a better user experience over a longer lifecycle and hence a loyal customer. That is where I sit. I still use my incredibly useful iPhone 5S where my friends have been through several Android devices. Net result is my cost is lower.
    zroger73AirunJae
  • Reply 18 of 73

    jarredkm said:
    As a huge Apple fan, I was incredibly excited about the X. It was hard for me to justify the increase in monthly payments though, so I wasn’t planning on upgrading any time soon. My face lit up when my husband “bought” me one for Christmas by forgoing his upgrade and taking my year old 7 in exchange. That’s true love right there. As much as I was excited for it, and do love almost every aspect of it, I will say that FaceID is incredibly frustrating. It does not work as advertised for a lot of people. Especially for those like me who have narrow eyes. My husband works for a major wireless carrier and said that he takes more calls from people wanting to return the X than any other device. A common complaint he hears is that FaceID doesn’t work. It usually takes me 2-3 tries to make my phone unlock, which makes me warn friends thinking about upgrading. My work phone still has TouchID, and comparing unlocking the two phones throughout the day makes me wish I still had TouchID. I can’t help but to think that the word of mouth from all of these disgruntled users could possibly have a measurable impact on sales. I know I’ve talked a couple of friends out of upgrading, and I highly doubt I’m the only one.
    First i've heard that Face ID doesn't work on people with "narrow eyes". Are you sure you're looking at it when swiping up? If you're looking away it won't authenticate as a security feature (unless you disable this). Your eyes, nose and mouth should be visible to unlock. I really don't think having narrow eyes is going to stop it from working as it makes the depth map based on *your* features placement.
    edited January 2018 anantksundarammagman1979fastasleep
  • Reply 19 of 73
    So the Financial Times is reporting that Apple will report its most profitable quarter in history with $19B in profits. Yet the stock is down 2% this morning. It blows my mind how obsessed Wall Street is with the quarter immediately following the holiday quarter. As if the holiday quarter means nothing. As if $19B in earnings means nothing,

     https://www.ft.com/content/568b8200-02f0-11e8-9650-9c0ad2d7c5b5
    radarthekatAirunJaemagman1979LukeCage
  • Reply 20 of 73
    jbdragonjbdragon Posts: 1,996member
    macapfel said:
    The price is steep. I was quite keen on replacing my 6. But the price put me off, and I thought I wait for the iPhone X 2, with all the usual refinements, and then might buy one without looking at my account balance for a while – and get a new battery for my 6 while waiting.


    Same thing for me. I was going to get the X, but the over all price. First Gen of this new Tech. I decided to hold onto my iPhone 6. At some point, I'll swap the battery in it. Later this year, I'll see if I'm going to upgrade or hold on for a 5th year with my iPhone 6.

    The other thing that pissed me off with the iPhone X is the starting with 64 GIG's. So that's really forcing me to spend the extra money to get the 256 gig version. My iPhone 6 is 128 Gig's. Get a new phone, downgrade my storage? It's yet another Apple scam. People are only going to put up with these ridiculous prices for so long.
    edited January 2018 avon b7kitatitCheeseFreeze
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