Report: Apple’s cutting iPhone X production in half this quarter

On Monday, Nikkei reported that Apple Inc. has notified suppliers that it will halve its iPhone X production target for the first quarter to around 20 million units. iPhone X, Apple’s first smartphone geared with an OLED display, failed to catch global market — something many put down to a price tag starting at $999. For upcoming devices, the sluggish sales could result in a delay to the company’s plans to introduce OLED screens in other models.

The iPhone X comes with facial recognition and wireless charging, but unlike previous models, it is widely regarded as lack of any new technology. The high price tag is largely the result of the cost of OLED panels made by Samsung Electronics, the sole supplier of the component. The South Korean giant is currently the only company that can guarantee a steady supply of the screens.

While the company is expected to maintain a total production target of 30 million units for lower-priced models such as the iPhone 8, 8 Plus and the 7. This production cuts for the iPhone X will have a big impact on manufacturers that have supplied high-performance components for the handset, with the combined impact expected to run into billions of dollars for the company.


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