Weak Demand Causes Apple to Slash iPhone X Production 50%

Apple will not kill the iPhone X this year – Report

Coming to the design aesthetics of the new iPhone, it might be a almost full screen design similar to the iPhone X from previous year with no home button and a notch for TrueDepth sensors.

The report added that Apple is expected to maintain a total production target of 30 million units for lower priced models such as the iPhone 8, iPhone 8 Plus and iPhone 7.

Multiple analysts have recently cut their sales forecast based on lower than expected demand, and now there is a report in Japan claiming Apple is telling suppliers that it slashing its iPhone X orders in half to 20 million units, for the first quarter of 2018.

Concrete evidence of how the iPhone X is faring should emerge on Thursday when Apple is scheduled to release its fiscal first-quarter earnings.

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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 USA and China, the Nikkei reported Monday. According to Forbes, Kuo's note pegs the 6.1-inch, mid-range LCD iPhone model that Apple is rumored to be launching later this year as the "iPhone X SE".

So far, Apple has not commented on these reports, which isn't necessarily a surprise.

The analyst doesn't say an iPhone SE 2 definitely won't happen, but isn't being too optimistic. All of that with a $1000 price tag seems to be proving tough to sell. Stock investors are already becoming nervous about the impact of weak iPhone X sales on parts suppliers. However, the 6.1-inch LCD model is particularly expected to help Apple grow the shipments of iPhones by up to 10 percent in the entire 2018 calendar year.

Nikkei also notes that the inventory for the iPhone X is "starting to rise", after a period of shortages. That's another instance where Apple introduced three new phones, but ended up staggering the iPhone X's debut.

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