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Apple Expected to Decrease iPhone 8 Production Given iPhone X and iPhone 8 Plus Popularity

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Reports from sources close to Apple’s supply chain suggest that any iPhone X production problems are long gone, and Apple will increase production to ship about 26 million of the OLED model in the holiday quarter.

According to a new report from KGI Securities analyst Ming-Chi Kuo, the supply increase is due to widespread positive reception of the high-end devices, and robust demand for Chinese New Year.

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On the other side we have the iPhone 8, which has been seeing lower demand when compared to the iPhone 8 Plus and iPhone X. Kuo believes that production of the iPhone 8 is expected to fall between 50 percent and 60 percent in the holiday quarter.

Kuo believes that the iPhone 8 Plus is “cannibalizing demand” for the iPhone 8, and some of Apple’s manufacturing partners will switch production lines from the iPhone 8 to the iPhone X to work out supply and demand balance issues. The report suggests that the 2017 Plus model is exceeding the non-plus version of the same device for the first time ever.

Apple appears to have predicted the strong demand for its high-end iPhones. The company is expecting its most profitable quarter ever, and is expecting between $84 billion and $87 billion in revenue for the holiday quarter.

[via MacRumors]

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