Jozef Polc/123RF

Apple to Cut iPhone X Production by Half Due to Lagging Demand

  • 30 January 2018
  • Sam Mire

Between the high price point, a departure from traditional operational methods and questions about exactly what new features consumers will receive for their money, Apple appears to be having a difficult time moving units of the iPhone X. The holiday season serves as a litmus test of any brand or item’s popularity, and disappointing sales of the iPhone X during the past month-plus have prompted Tim Cook to slash Q1 production by half.

While some have praised the beauty of the iPhone X’s OLED display, TrueDepth camera, and edge-to-edge screen, the phone also represents a departure from the way iPhones are traditionally operated, and this has seemingly been a turn-off for some Apple traditionalists. With no home button, more tutorial-necessary features such as the process for closing apps, and the integration of FaceID, which does not function as quickly as TouchID, it’s believed that more people have opted for the simplicity of the iPhone 8 iterations.

Muhammad Faiz Zaki/123RF

That, or they simply aren’t buying a new iPhone at all. While the $1,000 base price point seems like a logical explanation for the dip in iPhone sales in comparison their historical popularity, the comparable Samsung Galaxy Note8 is not much more affordable, with a retail price tag of $950. Yet, Samsung has seen far better sales from their phone, which is certainly attributable in part to their strong foothold in Asia, Korea in particular. But even in North America, the Note has done well, and one could point to features such as the S Pen stylus and its resistance to water and dust as reasons that people appear to be going with the latest Note over the iPhone X.

But regardless of why people aren’t buying the latest iPhone in the fashion they typically do, or at the rate Apple expected, the reality remains: they simply aren’t. And, according to Nikkei Asian Review, that means that fewer iPhones will be produced in the first quarter of 2018.

‘Apple will halve its production target for the iPhone X in the three-month period from January from the figure of over 40 million units envisaged at the time of its release in November.

The U.S. tech giant notified suppliers that it had decided to cut the target for the period to around 20 million units, in light of slower-than-expected sales in the year-end holiday shopping season in key markets such as Europe, the U.S. and China.’

Perhaps we will see a drop in the price of the iPhone X, though that would be an abdication that is uncharacteristic for the proud brand so many have become loyal to over the years. Rumors are already circulating that the 2nd generation iPhone X would mean the discontinuation of the first. This decrease in production will do little to quiet rumors of future discontinuation, as it’s logical to ask, if they’re not buying it now, why would they buy it after a better model is released?

About Sam Mire

Sam is a Market Research Analyst at Disruptor Daily. He's a trained journalist with experience in the field of disruptive technology. He’s versed in the impact that blockchain technology is having on industries of today, from healthcare to cannabis. He’s written extensively on the individuals and companies shaping the future of tech, working directly with many of them to advance their vision. Sam is known for writing work that brings value to industry professionals and the generally curious – as well as an occasional smile to the face.