Amid reports that Apple might discontinue the iPhone X as early as this summer, a new report claims that the company has cut iPhone X production in half owing to slow sales. The company has reportedly informed suppliers that it’s cutting iPhone X production for the March quarter by half from the predicted 40 million units to nearly 20 million units.
The Nikkei reported today that Apple saw “slower-than-expected” sales of the iPhone X during the holiday season in key markets like the United States, Europe, and China. The report also mentions that Apple has a combined production target of 30 million units for the existing iPhone models which include the iPhone 7 and the iPhone 8.
Apple traditionally cuts production after the holiday season so it’s unclear at this point in time if this production cut is in line with seasonal cuts from previous years or if this specific to the iPhone X.
The price is mentioned in most reports as the reason why sales have been below expectations for Apple. The argument makes sense, given that the iPhone X is the most expensive iPhone the company has ever released, with the base model starting at $999.
Apple doesn’t comment on supply chain reports so we can’t expect the company to respond to reports that it has cut iPhone X production by half for its flagship smartphone.
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