Another day, another report of Apple cutting down iPhone X production for the first quarter of 2018. Today’s report from the Wall Street Journal corroborating that Apple has decided to cut down iPhone X production for Q1 2018 to 20 million from an initial target of 40 million.
The company has reportedly reduced orders for iPhone X components by 60 percent. The move comes due to the weak demand for the handset. Two previous reports had also cited similar numbers and claimed that Apple is cutting iPhone X production to half for Q1 2018. As they say, there’s no smoke without fire, and its likely that Apple has decided to cut down on iPhone X production due to weak demand. However, that does not mean the handset has not sold as per the company’s expectations.
Apple likely sold a record number of iPhone X units in Q4 2017. The company had initially expected the iPhone X shortage to last for a few months due to production difficulties with certain components. However, Apple’s supply chain vendors were able to solve the yield issues within weeks of the handset going on sale which led to a dramatic increase in the iPhone X shipment ahead of the key holiday season. In fact, Apple ensured that the iPhone X was available for next-day delivery ahead of the holiday season in the United States, the United Kingdom, and China.
Now, since Apple has already sold plenty of iPhone X units in Q4 2017, it is understandable that the company will see a lower demand for the handset in Q1 2018. This is a cycle that occurs every year so there’s really nothing to worry about. Sure, Apple might have reduced the iPhone X production by a number larger than what most analysts might have expected but this makes sense since the company also sold a record number of iPhones over the holiday season. Customers who could afford the $999 iPhone X have already purchased it over the holiday season.