Apple will halve iPhone X production in Q1

Tuesday, 30 Jan, 2018

The battery will be around 8.5 percent larger than that of the iPhone 8 Plus, which has a 5.5-inch screen, and it will lack 3D Touch.

The tech giant told suppliers it would cut its production target for the phone to 20 million units, following slower-than-expected sales in the year-end holiday shopping period in Europe, the US and China, the Nikkei reported Monday.

Not only will Apple's decision to cut iPhone X production have an obvious impact on its earnings and sales outlook, but, according to this morning's report, it may also "have a domino effect" on the company's various supply chain partners, as well, which could even result in a massive liability for the tech giant. At the end of December, analyst Zhang Bin from Sinolink Securities Co. Increased output, coupled with decreased iPhone X-related demand, could cause NAND prices to slide further.

Despite the souring outlook for iPhone X sales, analysts expect that Apple will unveil a record profit of $19 billion when it reports its quarterly financial... Nikkei also mentioned that production of the iPhone X faced a components shortage in the wake of its launch, so production can now start to slow as inventory begins to rise.

Some of the things that were reiterated in this latest report were firstly that all of the new phones will have no home button at all and will include the, sometimes criticized, notch for TrueDepth sensors.

The iPhone X, which features an edge-to-edge display and facial recognition technology to unlock the phone, went on sale in November in the United States.

But Apple likely performed strongly in the October-December quarter, given that the iPhone X did not launch until November.

The "Plus" size will reportedly have a 6.46-inch screen and will be sold alongside a smaller 5.85-inch model in a bid to compete with Samsung's Galaxy Note.

KitGuru Says: The iPhone X was a gamble in several ways.

In a note originally obtained by AppleInsider, we learn that Apple's 6.1-inch iPhone - which will be positioned as a more wallet-friendly version of the iPhone X - will feature a display that won't be as edgeless as the company's OLED-based models.

Shares of USA -listed Apple suppliers such as Micron Technology Inc edged lower following the report.