Apple Asked Suppliers to Slow Down iPhone X Production: Digitimes

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.