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WSJ: Apple to Slash iPhone X Production Due to Weak Demand

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Citing people familiar with the matter, The Wall Street Journal is reporting that Apple will cut the planned production of its flagship iPhone X for the three-month period ending March 31, due to weaker-than-expected demand. In a separate report yesterday, the Nikkei Asian Review had also claimed that Apple will slash its production target for the iPhone X in the three-month period from January by almost 50%.

Iphone x

According to a person with knowledge of Apple’s production goals, the tech giant plans to make about 20 million iPhone X handsets in the first quarter, down from its initial plan of 40 million units. One source even said that Apple has cut orders for components used in the iPhone X by nearly 60%. “They always do this when things aren’t selling well. It’s a real headache,” one of the sources told WSJ.

Some consumers have said they don’t believe the features justify the iPhone X’s high price. “People love Apple, but they still have limitations,” said Kylie Huang, a Taiwan-based analyst at Daiwa Capital Markets covering the Apple supply chain.

Instead of the iPhone X or iPhone 8, though, some customers have turned to older, less-expensive models such as the iPhone 7 and 7 Plus, said Canalys analyst Nicole Peng. She said that wasn’t necessarily a bad thing for Apple, noting that the older models are cheaper to produce and generate relatively high margins per unit.

Following Nikkei’s report yesterday, Apple’s stock fell by almost 5.4%, whereas another 1.5% drop in the shares has been observed in afternoon trading today .

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  • It’s Me

    According to AppleInsider, Apple sold around 50mil total iPhones, of all models, in the same quarter for the last 2 years. This rumour is premised on Apple setting an initial target of 40million iPhone X for that same quarter. Just the X.

    Does anyone think Apple is that bad at forecasting, that they thought they could add 50% to the price of their flagship and sell as almost as many as all other iPhones in previous quarters? That the miscalculated demand by $4 billion dollars for one quarter of one product line?

    It’s ridiculous what passes as journalism these days. Not even a little bit of due diligence by Nikkei.

  • Albemarle

    Here we go again. Nikkei makes the same report every year and every year it’s wrong. What’s appalling is the lack of journalistic professionalism that every other ‘news’ outfit shows by not even looking at Nikkei’s previous predictions. Easier to regurgitate false information. Well, guess what? Ascribing the information to others does not absolve you from blame. So shame on Nikkei, shame on WSJ and shame in iPhone in Canada. I want real information from iPhone in Canada and not just repeats of false news. I thought you were better than that. Sad.

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