When Apple announced the iPhone X, to commemorate its tenth anniversary, the public went wild. Online speculation was expecting the phone to sell galactic proportions. Even social media was talking about how amazing it was going to be. Unfortunately, it seems that sales didn’t meet expectation for the $1,000 iPhone. So much so that Apple is reportedly cutting production of the device in half.
According to Nikkei, Apple intends to reduce production of the device from around 40 million handsets in the three-month period beginning in January to just 20 million. The move was made due to weaker-than-expected sales of the device. Most notably the weak holiday season in their key markets like China, Europe, and the United States. The report claims that suppliers have already been notified of the change.
Now, keep in mind that market research firm Canalys estimated that Apple shipped 29 million iPhone X in the fourth quarter of 2017. It is still classified that the iPhone X was the best shipping smartphone over the holiday season, but it failed to meet expectation. It is not, by any means, deemed a failure – leave that to Amazon’s Fire Phone.
There are many reasons why the device failed to catch on with buyers. Many people point to the price of the device. $999.00, but subsidized it is about the same for an Samsung Galaxy S8. More accurately, Apple created a competition within itself. Apple released an iPhone 8, which was in big supply. The iPhone X had some shipping delays.
Although, many observers noted that missing were the long lines from the iPhone 8 launch. Many suspected that people were holding out for the X model. With reports of delays into late November could have kept people away.
People may have considered that the price was too steep for what they were getting. Many Android users joked that they were getting a Samsung from 2015. It simply could have been a bit of what the consumer was getting for the price. Apple didn’t offer anything substantially different from its previous phones with the exception of the OLED screen. This will simply come down to Apple not being unbeatable as it used to be.