ibusinesslines.com December 09, 2018

Apple restarts iPhone X production over poor iPhone XS, XS Max sales

25 November 2018, 09:59 | Jodi Jackson

Apple restarts iPhone X production following weak iPhone XS and XS Max sales, report says

Apple Lowering iPhone XR Price in Japan, Restarting iPhone X Production

Earlier this week, Apple reportedly cut down on the production of its current generation iPhone XS, XS Max and XR amid slow sales.

According to Mashable, the iPhone XS and iPhone XS Max, which debuted in September, are not selling at a pace the company expected.

At this stage it isn't known when Apple plans to offer similar programs, but insiders claim that both retailers and carriers have reported weak sales Australia.

And because Apple has a quota to meet with Samsung (which provides the handsome OLED screens in the iPhones) the production process for the cheaper iPhone X had to be started up again. Thanks to the cut in the iPhone XS and iPhone XR production, Apple needs to make up for it and has made a decision to do this by reviving production for the older variant.

People involved in the supply chain said the resumption of the X is due in part to Apple's contract with Samsung SDI Co., a major provider of iPhone X's organic-light emitting diode display, or OLED, panels.

The iPhone XR has fewer features than Apple's other two new releases and costs more than still-popular older models like the iPhone 8. As expected, these panels were originally for iPhone XS and iPhone XS Max.

Price cuts at certain markets is not an unusual practice, even for a company like Apple that aims for higher retail prices rather than huge volume. As a result, Foxconn plans to cut US$2.9 billion in costs for 2019 that also could send about 10% of non-technical staff packing. Apple may soon start manufacturing its last year's flagship smartphone for certain markets according to the Wall Street Journal.

The company also announced that as of the December quarter it would no longer report unit sales of the iPhone, iPad and Mac because the figures weren't representative of its business performance and didn't account for the spread of prices in each product line.

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