Apple set to halve Q1 iPhone X production target

  • Apple set to halve Q1 iPhone X production target

Apple set to halve Q1 iPhone X production target

The iPhone SE is nearing its second birthday, and we've previously heard rumblings of the company making a follow-up more affordable phone to go alongside the iPhone 8, iPhone 8 Plus and iPhone X range.

Shares are down 0.78% to $US166.57 as The Wall Street Journal confirmed previous reports saying that Apple has told its suppliers to halve production targets to 20 million units in the first quarter of the year.

Apple won't be reporting its Q1 2018 quarterly results until Thursday, February 1, but if its guidance is any indication, it's going to be a monster.

Apple will still stick with a production target of 30 million units for the iPhone 8 and iPhone 8 Plus, which would suggest there's still some appetite for the lower-priced iPhones.

This implies that the additional features being brought into the latest smartphones, such as to-the-edge displays and facial recognition, are not considered worth the premium price Apple was trying to establish. KGI points out that Chinese users are now adhering to their existing phones for a long time, and specifically the notch on the top of the iPhone X's Super Retina display has turned away some potential customers in the region.

We've heard about Apple's planned iPhone triple threat before, both from Kuo and other reports coming out of Asia.

At its launch in September 2016, Apple CEO Tim Cook said the iPhone X would "set the path of technology for the next decade". That could mean as many as 90 million iPhone sales, so a massive production cut following such a tremendous quarter wouldn't be a total shock.

With components deliveries delayed, Apple had struggled to keep up with demand for the iPhone X immediately after its launch.

Ming-Chi Kuo is a KGI Securities analyst and has sources regarding the supply chain of Apple in Asia.

The tech giant is said to have plans to develop an iPhone that comes with a 6.1-inch TFT LCD display. For instance, the LCD panel will only allow for bezels as small as 0.5mm all around, which could be a bit thicker than those in the OLED-based models.