Apple shares dip on report of iPhone X production cut

30 January, 2018, 01:43 | Author: Kim Reid
  • Apple shares dip on report of iPhone X production cut

A leading Apple analyst says that Apple's resources may be stretched too thin to come out with a successor to its tiniest iPhone.

Apple's stock dipped slightly in premarket trading Monday after a report said it would halve production for the iPhone X in the first three months of 2018.

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We know about rumours expecting Apple likely to produce three new iPhones - iPhone X, iPhone X Plus, and a lower-priced 6.1-inch iPhone, all of which are expected to release later this year. But RBC Capital Markets analyst Amit Daryanani believes Apple's reported iPhone sales during the past quarter will be higher than anticipated and the projections for the current quarter won't be as lacklustre as many people fear. At the end of December, analyst Zhang Bin from Sinolink Securities Co.

The report added to growing concerns about weak sales of the US$999 phone, making investors jittery about the company's financial outlook when it reports first-quarter results on Thursday.

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Apple's iPhone X circuit board manufacturer: Murata Manufacturing Co. who will reportedly begin "slowing down production" in response to the news after steadily churning out the flagship's exclusive MetroCirc board since early January. This display will account for around 70 per cent of LCD panels for the 6.1-inch iPhone. The 2018 iPhone X will come with a 2800mAh battery, versus the 2715mAh from previous year.

The 6.1-inch iPhone is probably going to be "a weird smartphone" in a way.

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Nikkei also notes that the inventory for the iPhone X is "starting to rise", after a period of shortages. Every year there's some publication trying to make it sound like Apple's iPhone business is in trouble because Apple is adjusting for season order adjustment. The American company itself is thinking about lowering its sales target for OLED versions of new iPhones to be released this year, focusing more on conventional liquid crystal display versions instead.

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