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Apple to Slow iPhone X Production Due to Poor Sales

Apple to Slow iPhone X Production Due to Poor Sales

According to Nikkei, the cause for the most recently-reported cut to iPhone X production targets is actually weaker-than-expected holiday season in important markets like the U.S., China and Europe.

Ming-Chi Kuo is a KGI Securities analyst and has sources regarding the supply chain of Apple in Asia.

"We expect iPhone X will go to 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. In a Kuo research note obtained by MacRumors, the analyst suggests that Apple is putting its resources into a trio of new iPhones that will launch later in 2018.

With regards to its iPhone 7 and iPhone 8 models, Apple is reportedly maintaining the 30 million production targets for all the units that fall under those categories.

The iPhone X is the company's most advanced smartphone yet but it also comes with a staggering price tag. South Korean giant Samsung that now provides OLED panels for $999 iPhone X will also be hit as its orders will also be affected. All three of its smartphone, Apple is planning to introduce in September this year, and the current iPhone X in the near future be removed from production. Apple has not announced any changes within the production since the iPhone X was unveiled in November.

The 6.1-inch iPhone could be flanked by two other handsets: 5.8- and 6.5-inch OLED-based iPhones.

"After the first wave of demand has been fulfilled, the market now worries that the high price of the iPhone X may weaken demand in the first quarter", Zhang wrote. The 2018 iPhone X will also be powered by a new chipset and is expected to feature advanced Face ID.

OLED displays are produced by Apple's biggest competitor, Samsung. KGI points out that Chinese users are now adhering to their existing phones for a long time, and specifically the notch on the top of the iPhone X's Super Retina display has turned away some potential customers in the region.

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