According to a fresh report from well-connected Nikkei Asian Review, Which notably tells us the Apple’s latest decision has confirmed that Apple has slashed 50% of Total iPhone X Production for the first fiscal quarter that targets from a whopping 40 Million units to around 20 million units.
Despite this, the Apple’s stakes were always higher and continue to be high in terms of its high-end flagship phone. According to several reports surfaced on the web, Apple’s thousand-dollar iPhone may be facing the lower demand in the market. Today’s news is not interesting as much as of news that surfaced less than a week confirming the Apple’s plans to discontinue iPhone X entirely by the fall of this year.
Apple’s iPhone X sales go lower than what was expected during the important holiday shopping quarter which, in combination with Apple’s eleventh-hour attempts to truly ramp up iPhone X production, has merely resulted in inventories of the handset “swelling up.”
Apple has notified its suppliers to cut the production by 50% from 40 million units to 20 million units for the first quarter of 2018 in the light of lower-than-expected sales in the year-end holiday shopping season in the markets such as the U.S., China, Europe. Nikkei said in its report, adding that “The iPhone X […] has failed to catch on globally.”
Effect of Cutting the iPhone X Production
Apple’s decision to cut iPhone X’s Production by 50% may not only impact on its earning and sales drastically but as per the today’s report, it may also have the long-term effect on the company’s various supply chain partners. that could result in a massive liability for the U.S. tech giant.
According to Nikkei’s report ” The production cuts for the X will have a domino effect on manufacturers that supply high-performance components for the handset” He also said that it is expected to have an expected impact of billions of dollars for the First quarter of 2018 alone.
Apple’s iPhone X circuit board manufacturer: Murata Manufacturing Co. who will reportedly begin “slowing down production” in response to the news after steadily churning out the flagship’s exclusive MetroCirc board since early January. This decision is expected to affect all suppliers including kyocera, TDK & sony, who provides additional circuitry, batteries & advanced camera sensors to Apple for iPhone X.
However, there may be no significant impact on Apple-Samsung for 100 million + OLED panels deals for iPhone X entered into a major deal in last year which is the only OLED Display supplier to apple.
Others Impact of this decision?
Apple’s Decision to cut iPhone X production so soon and substantially may become a major cause of concern among its investors. As per Economic Daily News analysis, have been suggesting for weeks that Apple’s iPhone X demand is much slower than expected.
However, Apple has not released any official statement over these reports yet, but there is a shed of about 4 percent of its stock value (NASDAQ: AAPL) since they began swirling. It’s still highly unlikely to hear anything from Apple on iPhone X performance Company’s February 1st earnings call.