Apple Reportedly Cuts iPhone 8 Production In Half Ahead Of iPhone X Launch
There is rarely a year goes by without an analyst, industry insider, or so-called technology expert commenting on how many new iPhone models Apple is planning on manufacturing, or how demand for Apple’s devices will far outweigh supply capabilities at initial launch.
We heard all of that prior to the iPhone 8 and iPhone 8 Plus release, and now, with iPhone X launch on the horizon, we’re hearing that Apple is slashing manufacturing levels for iPhone 8 and pushing focus onto its new flagship, iPhone X.
According to the Economic Times, which reports directly out of Taiwan, Apple has ordered a huge manufacturing cut where iPhone 8 and iPhone 8 Plus are concerned. Jun Zhang, who operates as an analyst at Rosenblatt Securities, the Cupertino-based company has made the internal decision to focus capacity on iPhone X by instructing manufacturing partners to cut production of iPhone 8 and apply the extra capacity to the iPhone X manufacturing line.
Our research suggests the production mix was 50/50 between iPhone 8/8 Plus and the iPhone X, but iPhone X allocation could shift up to 60-70 percent in December and even more in the March quarter.
That’s definitely one opinion, and one way of looking at how important iPhone X will be to Apple over the next two financial quarters, but analysts at world-famous Deutsche Bank don’t necessarily agree with that assessment, suggesting that individuals may be looking too deeply into Apple’s manufacturing plans and coming up with a hypothesis which is far off the mark.
As we all know by now, Apple has been in this business for a long time and generally has a good gauge on the demand for its devices. That puts the business in a good and very strong position when it comes to ordering how many units of each SKU it wants to be produced at specific times. We can’t really see why this would be any different.
Initial glances at the market would suggest that iPhone 8 and iPhone 8 Plus has already been successful devices for Apple, but we won’t really know for sure until Apple announces its fourth-quarter financial results this coming November 2nd. Given how well received iPhone X was, and the fact that it’s being positioned as an extremely premium device both from a feature and price perspective, we expect the hardware to be yet another money spinner for Apple.