Apple has already stated that iPhone sales are soft this year, and in its latest quarterly earnings report, while revenue was up there was a dip in iPhone units sold. The company has even forecast a downturn in iPhone sales, indicating their market may be soft. Now, according to a report from Business Korea, Apple is reducing its order for iPhone X components.
So where does this information come from? Apple’s rival/partner, Samsung can be credited for spilling the beans. Samsung, which provides the OLED displays for the iPhone X, told its partners to reduce production on January 19. According to Samsung, Apple has reduced its order from 40 million displays to only 20 million in the first quarter, and the volume would be cut in half again in the second quarter.
It’s important to note that this doesn’t necessarily spell doom and gloom for Apple and the iPhone X, but instead a slightly different plan on the part of Apple. Rumors have been swirling that instead of discounting the iPhone X once its successor has been announced, the company will instead cancel the device completely.
According to a report from Ming Chi Kuo of KGI Securities, Apple will be discontinuing the device so it doesn’t interfere with their other product lines. “iPhone X would hurt product brand value & lineup of 2H18 new models if it continues to sell at a lower price after 2H18 new models launch: Lowering iPhone X’s price after the 2H18 new models launch would be a negative to product brand value given 3D sensing and OLED display are features of the new high-price model. Additionally, to sell iPhone X at a lower price may have a negative impact on shipments of the new 6.1″ LCD iPhone in 2H18. Thus, we estimate iPhone X will reach end-of-life (EOL) around the middle of 2018.”
In the past, Apple has continued, although slowed production of its previous generation iPhones while offering them at a discount. It seems, however, that a discounted iPhone X isn’t in the plans. The iPhone X has been the most expensive iPhone ever to date, and many consumers would love to see this model make it to the discount bin, but Apple has concerns that it will impact the sales of its other mid-tier and low end iPhones that target consumers shopping on a budget.
Rumors about the second generation iPhone X have already begun, and as we move into the spring you can expect to hear more and more about the iPhone X successor. Still, it may not be good news for consumers hoping to snag an iPhone X for a little less than the $1K price tag you find now, if Apple does discontinue the device with the release of the next generation iPhone.
What do you think about these changes to the iPhone X? Should they sell it for a cheaper price once the next generation is released or are you okay with them discontinuing the device completely? Sound off in the comments below.
