Apple Slowing Down iPhone X Production While Still Gauging iPhone 8 Sales
Apple is reportedly slowing down iPhone X production while it is still gauging the sales performance of the iPhone 8 and iPhone 8 Plus. The Cupertino giant is said to only be pushing the production of its first OLED handset into full gear once the numbers are in.
On Monday, Digitimes learned from Taiwan-based upstream component suppliers that Apple has decided to withhold part of the component shipments for its iPhone X, for it is still waiting to see the market’s response to the release of its iPhone 7 and iPhone 7 Plus successors. In addition, it is also anticipating the pre-sale orders for its 10th anniversary iPhone before increasing shipments and hastening the production process.
Sources specifically indicated that suppliers have been instructed to slow down the delivery of iPhone X components. As of late, only 40 percent of the parts and components quantities are being shipped for the initial production of the first OLED iPhone. Apple is then expected to increase its component orders once the company has already obtained a clear idea of the market’s demand for its bezel-less handset and its new yearly upgrades.
This strategy is something that Apple adopted for the iPhone 7 last year. It can be noted that Samsung’s biggest rival initially ordered 60 percent of the parts and components needed for the assembly of the iPhone 7. Then, around 1 to 2 months later, the company pulled in the remaining 40 percent.
Even though Apple has instructed for shipment slowdown, the same sources stated that suppliers still need to step up in producing the 40 percent parts and components needed for initial production of iPhone X. This is because of the low yield rates at the suppliers’ production lines. MacRumors explained that while some suppliers are doing their best to keep up with Apple’s demand, others are manufacturing parts more slowly. And, of course, Apple wants to ensure that all needed parts and components are equal in number so that assembly would go as smoothly as possible.
KGI Securities analyst and notorious Apple leaker Ming-Chi Kuo has already claimed that Apple will unlikely achieve complete supply-demand equilibrium for the iPhone X until the first half of 2018. This won’t be at all surprising, knowing that a day before Apple unveiled the 10th anniversary handset production totaled fewer than 10,000 units per day.
Nevertheless, iPhone X is expected to perform well once it comes out. Kuo has revealed that as of Monday, consumers’ preorders for the OLED handset have already exceeded 40 to 50 million units. Another indication that more people could be anticipating the release of the iPhone X is the shorter lines for the iPhone 8 and iPhone 8 Plus at Apple retail stores.
For consumers who want to get their hands on the iPhone X once it officially hits the market, preorders will be opened on Oct. 27, Friday. The units are then expected to arrive on Nov. 3. Apple will start selling the handset in stores in limited quantities on the same day.
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