Tokyo Jan 30 (IANS) Slower-than-expected sales have forced Apple to slash iPhone X production by half for the January-March period -- to 20 million units from the earlier planned 40 million units the media reported.
According to a report in Nikkei Asian Review on Tuesday the Cupertino-based giant has notified suppliers that it had decided to cut the iPhone manufacturing by 50 per cent owing to slower-than-expected 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 lacklustre sales could result in a delay to the company s plans to introduce OLED screens in other iPhone models " the report noted.
South Korean giant Samsung that currently provides OLED panels for $999 iPhone X will also be hit as its orders will also be affected.
The production cuts for iPhone X said the report will have a domino effect on manufacturers that supply high-performance components for the handset acewith the combined impact expected to run into billions of dollars for the January-March quarter alone".
Apple s 10th-anniversary "super-premium" smartphone went on sale across the globe on November 3.
Earlier this month an analyst associated with Taiwanese business group KGI Securities said that more sluggish-than-expected response may lead Apple to discontinue the first-generation iPhone X around mid-2018 as the second-generation model is set for launch later this year.
According to Ming-Chi Kuo the most famous analyst with KGI Securities when it comes to Apple the Cupertino-based giant will not sell iPhone X at lower price as it will hurt its other products in the lower-priced premium segment.
Kuo estimated that Apple would ship about 18 million iPhone X units in the January-March quarter in 2018.
"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.
Apple shipped 29 million iPhone X units in the fourth quarter of 2017 Singapore-based market research firm Canalys said adding that this made iPhone X the world s best-shipping smartphone model over the holiday season.
"The iPhone X performance is impressive for a device priced at $999 but it is slightly below industry expectations " said Ben Stanton analyst at Canalys.
--IANS
na/pgh/
