Business/Economy

Lower Demands pushes apple to cut iphone x production by half

Lower Demands pushes apple to cut iphone x production by half

Tokyo: Slower-than-anticipated deals have pushed Apple to cut iPhone X manufacturing by 50% for the January-March period - to 20 million units from the prior arranged 40 million units, the media revealed.As indicated by a report in Nikkei Asian Review on Tuesday, the Cupertino-based company has informed suppliers that it has opted to cut the iPhone production by half due to sluggish-than-anticipated sales in Europe, the US, and China.

 

"With components deliveries delayed, Apple had struggled to keep up with demand for the iPhone X immediately after its launch. Rising inventories appear to have pushed the company to sharply slow production," the report added."Looking forward, the lackluster sales could result in a delay in the company's plans to introduce OLED screens in other iPhone models," the report stated.

South Korean rival Samsung that presently gives OLED display to the $999 iPhone X will likewise be hit as its demand will likewise be influenced.The production cuts for iPhone X, said the report, will have a domino impact on producers that supply high-quality parts for the handset, with the joined effect anticipated to cost around billions of dollars for the January-March quarter alone".

 

Last month, an analyst related with Taiwanese business firm KGI Securities said that more languid slower-than-anticipated demand may lead Apple to suspend the original iPhone X around mid-2018 as the next-gen model will be launched later in 2018.As indicated by Ming-Chi Kuo, the most well-known analyst of KGI Securities with regards to Apple, the Cupertino-based mammoth won't offer iPhone X at a slashed down the price as it will hurt its other products in the low-cost premium segment.

 

"We expect iPhone X will go to the end of life (EOL) around mid-2018 and that total life cycle shipments will be around 62 million units, lower than our previous forecast of 80 million units," the analyst said.