Update: AAPL shares fell 2% on the report.
A report today claims that Apple is cutting its iPhone X production targets in half in response to ‘disappointing holiday season sales.’
Apple is said to have notified suppliers that it has cut its production target for the first quarter of this year to 20M, after previously telling them to expect to produce 40M units …
Nikkei carries the report, based on unnamed supply-chain sources.
Apple is said to be maintaining its existing production target of 30M units across the iPhone 7/Plus and 8/Plus ranges.
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.
Suppliers are said to be bracing themselves for multi-billion dollar hits to their own revenues.
Nikkei goes on to suggest that Apple could cut its forecast production of new OLED models for this year.
This tallies with yesterday’s KGI report, which said that the 6.1-inch LCD iPhone expected to be launched this year could help the company recover from ‘lower than expected’ iPhone X sales. A previous report claimed that iPhone 8 orders were also down on expectations.
Photo: Reuters/Toru Hanai
