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Apple's Decision to Slash iPhone X Production Volume in Q1 2018 Could Delay Future OLED Models

Monday January 29, 2018 3:05 am PST by Tim Hardwick
Apple is set to halve its 40 million iPhone X production target in the three month period from January, reported Nikkei Asian Review on Monday without naming a source.


The U.S. tech giant notified suppliers that it had decided to cut the target for the period to around 20 million units, in light of slower-than-expected sales in the year-end holiday shopping season in key markets such as Europe, the U.S. and China.

The iPhone X, Apple's first smartphone equipped with an organic light-emitting diode display, has failed to catch on globally -- something many put down to a price tag starting at $999.
Part of the reason for the high price tag of iPhone X is said to be down to the cost of OLED panels made by Samsung, which is the only supplier of the component that can guarantee Apple a steady supply of the screens. According to Nikkei, Apple is now considering an increase to the proportion of LCD iPhone models by reducing production of the OLED screen models scheduled for release this year.

Apple is expected to launch a trio of new iPhone models in 2018, including 5.8-inch and 6.5-inch models with OLED displays and a 6.1-inch model with an LCD display, according to respected KGI Securities analyst Ming-Chi Kuo. However, at least one other analyst has predicted that the LCD-to-OLED ratio this year will actually be 2:1.

DigiTimes' Luke Lin believes Apple is increasingly leaning towards releasing two LCD-based models and a single larger 6.4- to 6.5-inch OLED model. Indeed, today's Nikkei report claims lackluster sales for iPhone X could actually result in a delay to the company's plans to introduce OLED screens in other models, potentially adding weight to DigiTimes' prediction.
The production cuts for the X will have a domino effect on manufacturers that have supplied high-performance components for the handset, with the combined impact expected to run into billions of dollars. It could also slow down the shift at display manufacturers from LCD to OLED technology.
Nikkei added that Apple is expected to maintain a total production target of 30 million units for lower priced models such as the iPhone 8, iPhone 8 Plus and iPhone 7. Apple Japan replied to Nikkei's request for comment by stating that it would confirm the details with headquarters.

Related Roundup: iPhone XS
Tag: nikkei.com
Buyer's Guide: iPhone XS (Don't Buy)
[ 487 comments ]


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maflynn
20 months ago

Part of the reason for the high price tag of iPhone X

I think apple misread the situation with pricing the X so high. I have one, and its a good phone, but I will say its not 1,000 good.
Rating: 91 Votes
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laudern
20 months ago
This is what happens when you price yourself out of the market.
Rating: 86 Votes
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Cloudkicker
20 months ago
You can't spin this as a positive.
Rating: 68 Votes
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djc6
20 months ago
I mostly don't want the iPhone X because of a lack of Touch ID.

Siri is always telling me "you need to unlock your iPhone first" and usually if I'm asking Siri something, it means I don't want to pickup my phone and hold it up to my face. Touching phone briefly much more convenient when its in the phone cradle on the dash of my car.

I like my headphone jack too, so iPhone 6S+ where I'm at until the phone goes kaput.
Rating: 53 Votes
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levitynyc
20 months ago
LOWER THE PRICE!!!
Rating: 53 Votes
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sinsin07
20 months ago

Part of the reason for the high price tag of iPhone X is said to be down to the cost of GREED ...

Rating: 41 Votes
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Populus
20 months ago
When an iPhone costs more than a MacBook Air, something's just wrong. The 1159€ pricetag is excessive, from my point of view.

This was an Apple attempt to raise prices on its iPhone lineup, both with X premium price and the expensive 8 (which should cost no more than a 7). I'm very proud of Apple customers and how they have said 'no' to Apple new prices policy. Keep that way!!!

On top of that, the prices of replacing the glass back are prohibitive. And this is against both new iPhones... The best choice is still the 7.

Just give me a 7 with an A11 or A12 and I'll be happy.
Rating: 39 Votes
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stanleyRoper
20 months ago

I think apple misread the situation with pricing the X so high. I have one, and its a good phone, but I will say its not 1,000 good.


I'm a long-time Apple customer. When I'd upgrade my iPhone I'd get the highest capacity of the flagship model. This time around though I decided that the 64GB 8 Plus was all I was willing to spend. I'm not surprised to read that others in the market for a new iPhone came to a similar decision.
Rating: 36 Votes
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OllyW
20 months ago

Price was an absolute non-issue for me

It was for me. I could afford it but the idea of paying £1000 for a phone just seemed ridiculous.
Rating: 31 Votes
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maflynn
20 months ago

i guess im one of the few that dont miss the headphone jack.

I still miss it, I've gotten used to not having it, but if I had my druthers, I'd want it back
Rating: 24 Votes

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