Apple Cuts iPhone 8 Production In Half Prior To iPhone X Launch Reportedly

The facts here is that Apple’s iPhone 8 and iPhone 8 Plus sales have fallen ahead of extreme pressure of iPhone X launch. We are hearing that Apple is slashing manufacturing levels for iPhone 8 and pushing focus onto its new flagship, iPhone X.

The analysts, industry insiders, or so-called technology experts commenting on how many new iPhone models Apple planning on distribution, or how demand for Apple’s devices will weigh supply capabilities at initial launch.

According to the Economic Times, reporting directly out of Taiwan, Apple has ordered a huge manufacturing cut where iPhone 8 and iPhone 8 Plus are concerned. While the Cupertino-based company has made a decision to purely focus capacity on iPhone X by instructing manufacturing partners to cut production of iPhone 8 and apply the extra capacity to the iPhone X manufacturing line.

Our research suggests the production mix was 50/50 between iPhone 8/8 Plus and the iPhone X, but iPhone X allocation could shift up to 60-70 percent in December and even more in the March quarter.

As far as the iPhone 8 and the iPhone 8 Plus sales, it didn’t manage to gain any huge sales, because of the design and the similarities which consumers already mingled with the iPhone 7/7 Plus. The only difference would be its Face ID and A11 Bionic chip. And also because the tenth anniversary iPhone is already coming into the hands of them.

Now that how important iPhone X will be to Apple over the next two financial quarters is in the darkness. But analysts at world-famous Deutsche Bank don’t necessarily agree with the assessment, suggesting that individuals may be looking too deeply into Apple’s manufacturing plans and coming up with a hypothesis which is beyond the mark.

A totally internal decision that Apple asked its suppliers to reduce iPhone 8 and iPhone 8 Plus. Reportedly dops nearly 50% when iPhone X launches next month, according to Reuters, which cited China’s Economic Daily News.

The report also quotes an unnamed source who claims it is the first time in the iPhone’s history that new models face a major crisis (cutback) so shortly after mass production began, iPhone 8 and iPhone 8 Plus officially went on sale September 22.

Though Apple hasn’t revealed iPhone 8 and iPhone 8 Plus sales numbers as yet. But the company will report its fourth-quarter earnings results on November 2nd, including iPhone sales, fortunately, it doesn’t break out the number of a model-by-model basis.

How well received iPhone X was when it’s being positioned as an extremely premium device both from feature and price perspective is to be seen. We expect the hardware to be yet another money spinner for Apple. With an OLED display, nearly 82 percent screen-to-body ratio, and a TrueDepth camera system powering 3D facial recognition features like Face ID and Animoji, the iPhone X is unlike any other smartphone Apple has ever sold.

It has to admit that even if iPhone 8 and iPhone 8 Plus sales have in fact been lower than expected, it could be a sign of pent-up demand for the upcoming iPhone X. Industry observers are patiently waiting to see how many customers are holding out to purchase the flagship iPhone smartphone when pre-orders begin October 27.

iPhone X officially launches November 3, starting at $999 in the United States.

(Via: Reuters)

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