We didn’t see this coming!
Apple is restarting production of the iPhone X due to weak sales of the iPhone XS and XS Max, according to a Wall Street Journal report.
Both the iPhone XS and XS Max debuted in September to much ballyhoo, and both phones have received favorable reviews; however, it seems that now the newest iPhones are not selling quite as fast as Apple originally projected.
This surprising development comes just days after Apple reportedly cut production orders for all three 2018 iPhone models (i.e. the iPhone XS, iPhone XS Max, and iPhone XR).
The decision to restart iPhone X production is due in part to an agreement Apple made with Samsung to purchase a certain amount of OLED display panels, according to the WSJ.
Apple is also reportedly using the iPhone X to make up for lost sales of the iPhone XS and XS Max. The report claims that the older iPhone model is cheaper to produce because the components and manufacturing equipment are now older and therefore cheaper.
Nonetheless, the decision is a little strange because, in January, Apple cut production of the iPhone X in half from 40 million to only 20 million units. Major markets in the U.S., China, and Europe were to blame for the sluggish sales after an initial buzz following the iPhone X’s release in Nov. 2017.
But Apple has been especially challenged by the iPhone XR model’s weak sales. In late October, Apple cut its production plan by about one third according to a separate Wall Street Journal report. Now, Apple is slashing the price of the iPhone XR in Japan to boost sales.
Still, even with all of its recent woes, Apple remains one of the strongest brands in the world. A recent survey found that Apple customers are some of the most loyal of any tech brand, with many upgrading to newer iPhones when theirs become old. But a big question remains for the smartphone giant: Is anyone compelled to buy the new models?