Apple resumes iPhone X production due to weak iPhone Xs sales

Laverne Mann
November 25, 2018

Given that demand for the latest Apple models is much lower than expected and their production has been reduced, it would not be surprising if the iPhone X came to the rescue. Supply chain sources say that the resumption of iPhone X production is also partly due to Apple's contract with Samsung SDI Co., that mandates purchase of a certain amount of OLED panels. Thanks to the cut in the iPhone XS and iPhone XR production, Apple needs to make up for it and has chose to do this by reviving production for the older variant. Consumers apparently feel that the sacrifices in iPhone XR do not warrant such a high asking price and rather seem to veer towards the more affordable iPhone 8, which is still available at major stores across the country.

Now, just days after reportedly putting a halt on the new iPhones, Apple is restarting the iPhone X production.

Apple shocked investors a few weeks ago with a sales forecast for the Christmas quarter below Wall Street expectations, prompting certain suppliers to issue warnings that pointed to weakness in new iPhone sales. The reportclaims that the older iPhone model is cheaper to produce because the components and manufacturing equipment are now older and therefore cheaper.

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We reported earlier this week that Apple has slowed production plans for all the three models released in recent months, with some drastic chops made on least-expensive XR models.

Coming back to iPhone XR price drop, it is not yet clear how significant the price cut will be. At one point, Apple authorised retailers in Malaysia had offered a RM500 discount for all 128GB and 256GB versions of the iPhone 7 and iPhone 7 Plus. The company also plans to eliminate about 10% of non-technical staff, according to an internal memo.

Per Bloomberg, Foxconn is planning to cut expenses by 6 billion Yuan in its iPhone business primarily due to lackluster demand.

Other reports by MaliBehiribAe

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