2018 has definitely not begun with a happy note for Apple. The company is allegedly trying to cut (aka reduce) the production of the iPhone X. The iPhone has been out-of-stock since its first pre-order sale and the company has been burning the midnight oil to meet the demands. However, a new report claims that for the Q1 of 2018, Apple has planned to slash the production of its ‘revolutionary’ device.
The reason behind this cut is suggested to be a rapid decrease in iPhone X’s demand. The original report has stated the notes of famous analysts who have already cut the shipment projections of the iPhone X for the Q1 of 2018, citing signs of lacklustre demand at the end of the holiday shopping season.
Zhang Bin, an analyst of Sinolink Securities Co. wrote, “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.”
He has also predicted that the company will ship just 35 million iPhone X units in the next quarter, 10 million lower than the earlier estimates.
JL Warren Capital LLC said shipments will drop to 25 million next quarter from 30 million in the Christmas quarter. It also states that the drop reflects “weak demand because of the iPhone X’s high price point and a lack of interesting innovations.”
Analysts believe that the company has decreased the orders of the iPhone X to its suppliers.
A report from Taiwan says that the Cupertino giant has trimmed its first-quarter sales forecast to 30 million, which is 20 million lesser than its previous forecast of 50 million sales. Foxconn has also stopped recruiting workers and this confirms the fact even further.
Shares of many Asian suppliers went down on Monday and Tuesday, Bloomberg states. Analysts from Cowen & Co. say that customers are buying cheaper iPhones, as Apple failed to add enough new features to justify a $999 price tag for the iPhone X.
Do you agree with the price issue of the iPhone X? How do you feel about this decision by Apple? Let us know in the comments section below.