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Apple Asked Suppliers to Slow Down iPhone X Production: Digitimes

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The iPhone X isn’t even available for pre-sale yet, and already Apple is worried about future sales – iPhone X component suppliers have apparently already been told to slow down delivery.

According to a new report from Digitimes, who cite Taiwanese insider sources, Apple told suppliers of iPhone X components to reduce shipments. Only 40% of the expected amount is shipped for the initial launch of the new Apple flagship, the sources confirmed, though some manufacturers still struggle to cope even with the new, lowered orders.

“Suppliers are currently shipping parts and components that amount to only about 40% of the quantities originally planned for the initial production of iPhone X…,” reads the report. “However, despite the instruction for shipment slowdown, some suppliers still need to step up production to meet the 40% requirement due to low yield rates at their production lines, the sources indicated.”

Digitimes says that some suppliers are shipping parts and components that amount to up to 40% of the original orders. Others do not even meet the 40% requirement due to lower yields, and they need to step up production in spite of the request to slow down.

The report notes that Apple adopted a similar approach for the iPhone 7 last year. Initial shipments only reached 60% of the original order, with Apple pulling in the remaining 40% of orders one to two months later.

“Apple adopted the same strategy previously for iPhone 7 in 2016 during which initial shipments of parts and components reached only about 60% of the materials originally required by the vendor, noted the sources, adding that Apple pulled in the remaining 40% of orders 1-2 months later,” the report continues.

According to the report, Apple is biding its time, waiting to see how the iPhone X fairs during pre-sales, as well as how the iPhone 8 and iPhone 8 Plus sell, before pushing iPhone X production into full gear.

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  • Mario Gaucher

    I predict that the preorders stock of iPhone X will sell out in a few hours… and probably in a few minutes. Apple will probably do this on purpose to not kill to much the iPhone 8 sales.
    Most iPhone 7 users that are interested in the iPhone X won’t buy the iPhone 8 because of the iPhone X. iPhone X, like most newer designs iPhone, will be a big success.

  • Mr Dog

    I think there is a bottle neck somewhere

  • KBlazer07

    I’m not as optimistic as you. Someone had mentioned in another thread that the X seems to be a test unit rather than something that Apple wanted to release. I agree with that. The notch is ridiculous (will be removed next year) as is the price. Also, it is apparent that they can’t build this thing efficiently. That being said, Rogers’ posted “contract” price seems reasonable, so we’ll have to see. I think many people will wait another year for Apple to iron out all the kinks and for them to release a phone that they want to release.

  • OliChabot

    In what world does 599$ + 85$/month contrat seems like a reasonnable price…

  • Chad Kirby

    KBlazer, most of your comments are something that only a few at Apple would know… speculation.

  • KBlazer07

    I don’t disagree with you. My warped thinking is that there are lots of people (majority?) already on these overpriced plans, so it’s just the cost of the phone, plan is neglected because they’re accustomed to paying that much. I buy outright, so there’s little chance of me upgrading. Also of note, my daughter works at Walmart and gets 25% of a plan and 10% of a phone, so it makes this situation much more feasible. I am assuming lots of people also get similar discounts with their work (although not me unfortunately).

  • KBlazer07

    I’m just guessing/voicing an opinion (although I’m sure I was one of the first to correctly guess the name of the new phone, so I get lucky sometimes). I read a lot and am in manufacturing, so I kind of know how things go. “Get it out the door, fix it later!”

  • hlna55

    They’re just worried ccause it will take another 5 years for a new design so they wanna keep this one fresh as long as possible.

  • OliChabot

    Yes, I get 30% off with Rogers. But honestly I’m scared of the day I’ll have to either pay 1300$ for a phone and a 60$/month plan or 700$+ a 90$/month plan…

  • Quattro

    This is all utter nonsensical speculation. Of course they are cutting supply of certain components when other components are lagging behind. It’s just common sense to do so.

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