A new report from South Korea is claiming that Apple has now decided to discontinue the iPhone X this coming September. The reason cited is the slowing sales of the 10th anniversary iPhone despite being the first ever Apple phone to come with OLED display.
Citing industry sources, South Korean news site Etnews reported Friday that Apple has already decided to discontinue the iPhone X this fall, particularly in September. “Slowing sales of iPhone X affected Apple’s iPhone business,” the sources said.
It’s no secret that the iPhone X failed to meet sales expectations following its launch last November. IBTimes learned in January that Apple was cutting its iPhone X production target by half due to the unsatisfactory performance of the device during the 2017 holiday season. It was disclosed at the time that instead of producing 40 million iPhone X units in the first quarter, Apple only ordered 20 million units from its suppliers.
There’s been a domino effect plaguing Apple and its partners ever since then. OLED supplier Samsung Display decided to stall its new OLED plant in anticipation of the lowering demand for the iPhone X. Foxconn, Catcher Technology and Casetek Holdings also looked into other opportunities outside of their partnerships with Apple to secure the growth of their businesses this year.
When Apple unveiled the iPhone X last September, it was almost certain that the redesigned iOS 11-running handset would do well. Equipped with new and advanced features and being the handset that commemorates the iPhone series’ 10th anniversary, the iPhone X made a lot of noise in the press and turned a lot of heads from excited consumers. Despite all these, the handset turned out to be a disappointment for Apple. Hence, the tech giant is discontinuing it, according to industry sources.
Apart from the discontinuation of the device, sources also claimed that the iPhone X’s lukewarm sales have forced Apple to lower the percentage of production of its upcoming OLED iPhones. Earlier reports stated that Apple is planning to launch two OLED iPhones this 2018: one variant with a 5.85-inch screen and another with a 6.45-inch display.
For fear that history might repeat itself later this year until early next year, Apple is reportedly planning to produce around 50 million units of the two iPhone models. This is almost half of the 100 million units initial target of Apple for the iPhone X. “This year, two OLED models will be launched, but the total production will remain at about 50-55 million units,” a parts supplier official said, according to The Investor.
While Apple is reducing the number of OLED iPhones it is releasing this year, the company is likely to increase the production of its LCD iPhone. As what previous reports stated, Apple is releasing three iPhone models this 2018. Two of which will have OLED screens, while the other one is going to sport LCD display. Apple is said to be tapping Japan Display Inc. and Sharp for the LCD panels needed for the manufacture of its LCD iPhones.