Apple slashes the production of iPhone X for the three-month period ending to March 31st 2018 following weak demands for the product due to the higher cost of the handset.
The company will reduce its initial production plan of 40 million iPhone X down to 20 million in the first quarter, according to a report released by Asian Nikkei Review.Â
The cut comes after Apple reported slower sales than expected during the end-of-year holidays sales across US, Europe and China. The sales drop is thought to be related to the phone’s high price and poor reception by consumers. In addition, troubles caused by the incorporation of the new OLED panels led to delays in the manufacturing process.Â
OLED displays are produced by Apple’s biggest competitor, Samsung. It is reported that they were charging Apple about $120 per display. Rumours suggest Apple is going to work with tech manufacturer LG Electronics, to reduce the price for the high-definition displays.
Apple has declined to make any comments on the matter. However, later this week they will release their first report on iPhone X sales for the three months to December. Analysts expect the total iPhone shipments to show an increase by 1.5 percent.
The US tech giant launched iPhone X last November to celebrate its 10th anniversary. Although, the company knew it was a risk they wanted to promote the idea of a smartphone of the future with features that included facial-recognition technology.
After the news of the production cut broke, Apple shares were down 2.1 percent.Â