Slow sales and lessening demand of the iPhone X are forcing Apple to consider ending production of the flagship device. A new leak discovered by Apple Insider, according to KGI Securities, Apple may be cancelling iPhone X production as soon as the summer of 2018.
Apple was hoping for strong sale numbers in China, but unfortunately for the company, that was not the case. KGI is expecting this to be the last iPhone X production cycle. iPhone X production is expected to come to a full halt a few months just before the new iPhone line-up will be announced and released.
There is talk going around about three new iPhone models to be coming out in 2018. Apple is reportedly working on increasing the screen to body ratio and replacing the current on top of display sensors with ones below the screen. This would fix the issue of users not being as happy with the device due to its top most sensors taking up quite a large amount of space on the screen.
It was KGI Securities’ analyst Ming-Chi Kuo, according to Forbes, who pointed out disappointing sales as being the lead cause behind the decision. The production would be ceasing this upcoming summer and would be he first since the iPhone 5C. The last iPhone model to be cancelled ahead of its normal end of life cycle was the iPhone 5C back in 2014.
During a time in which most smartphone manufacturers are able to make large screen phones and kill off bezels, Apple’s design was still far behind.
“In a research note seen by AppleInsider, KGI securities believes that Apple will ship around 18 million of the iPhone X in the first calendar quarter of 2018. Contrary to other predictions based on the supply chain, KGI says that the iPhone X has not been as impactful in China as predicted because of the notch holding the sensors for the device, giving consumers the impression that there is less usable space than on the iPhone 8 Plus,” the Apple Insider report mentioned.
iPhone X Production Halts while Global Smartphone Market Shrinks
Another reason for this is that smartphone sales around the globe are also predicted to shrink by 5%. iPhone X production may be killed off, but other smartphone manufacturers will not be expecting much growth either. The reason for the global market shrinkage is that people are deciding to hold on to their older smartphones for longer now.
Many see the iPhone X as not having been as exciting for the consumer base as expected. People with the Apple iPhone 6S or 7 may not have been as thrilled to upgrade as they were when the former models came out. A sharp increase in the price tag may also have been another factor in keeping people away from the iPhone X.
iPhone X production is expected to end after Apple ships off the remaining order of 18 million devices. We are expecting Apple to release any further models of the iPhone X. There is a high chance of there being a completely new series altogether.
What do you think about the report of Apple deciding to cancel iPhone X production? Does Apple have any better ideas in place or is a downfall of Apple going to be an ongoing thing this year? Let us know in the comments section below.