Apple reduces iPhone X production due to weak demand

Jan 29, 2018 13:11 GMT  ·  By

Another day, another report pointing to poor iPhone X sales, as it’s all but confirmed now: Apple’s anniversary iPhone is not at all a record-breaking device in terms of sales, and the company is trying to adopt several damage-control methods for the remainder of the year.

Nikkei reports that Apple plans to reduce iPhone X production from 40 million units in the first three months of the year to no less than 20 million units, mostly as a result of poor sales in top markets like Europe, the US, and China.

While Samsung has been impacted as well following the substantial cut in iPhone X production, the report states that Apple is focusing more and more on LCD panels, with the production target of 30 million panels for iPhone 8 and iPhone 7 still on the table.

Second OLED iPhone for 2018 uncertain

One of the consequences of this decreased focus on OLED displays is that Apple might reconsider its plans for the 2018 iPhone lineup, which was originally said to include two different models featuring such screen tech.

The iPhone X is Apple’s first iPhone in history that uses OLED instead of LCD, and Cupertino was expected to launch a second model this year that would be positioned as a Plus-sized version of the 2017 iPhone. This means the 2018 lineup was expected to comprise a successor to the iPhone X and a bigger model, both of which were supposed to come with OLED.

A third model has also been rumored, but this time Apple was said to be looking into LCD tech for a lower price. If this report is accurate, then the company could very well reconsider the second OLED iPhone for 2018, and instead stick with LCD for at least one more generation.

The OLED display itself is one of the most expensive parts of the iPhone X and it is manufactured by Samsung, with Apple also believed to be looking into expanding its OLED partnerships with the addition of LG for the 2018 generation.