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iPhone X production reportedly cut after holiday sales underwhelm

by Justin Herrick | January 29, 2018January 29, 2018 8:00 am PST

The iPhone X might not be doing so well. Production on Apple’s latest iPhone has reportedly been slashed after underwhelming holiday sales revealed demand isn’t as high as expected, according to Nikkei. Suppliers who help manufacture the iPhone X have been notified by Apple that its production target for the first quarter has been cut down to 20 million units.

Apple originally believed it should have 40 million units made to open 2018. With sales slumping even during the holidays, the company would like to pull back before too much stock piles up.

 

Its high price tag may have kept sales low. The iPhone X is the most expensive iPhone ever, coming in at $999 to start. Samsung’s custom OLED panel for the display is believed to have driven up the price more than anything else. There have also been rumors that the iPhone X is a one-off release in which a successor won’t be introduced but rather several new models comprising the new lineup.

The report also adds that key markets, including the United States and China, are where the iPhone X really struggled late last year. If those markets don’t perform well, it’s obvious that overall sales are going to be on the disappointing side. Apple relies heavily on them because the brand loyalty is so strong and thus getting consumers to upgrade isn’t as challenging. But, in 2018, those trusted consumers appeared to have kept their current iPhone or opted for the cheaper iPhone 8.

Apple’s iPhone X could see its price dropped in the near future. Recently it was suggested that, in order to spark sales, the company would knock $50 or more from the prices of select devices. Both the iPhone X and iPhone 8 would be included, and an announcement could come at WWDC 2018.


Justin Herrick

Justin is easily attracted to power buttons. His interest in technology started as a child in the 1990s with the original PlayStation, and two...

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