Apple Could Soon Slash iPhone 8 Production in Half

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Grace Liu
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Apple Could Soon Slash iPhone 8 Production in Half

Postby Grace Liu » 20 Oct 2017 10:35

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Apple will reportedly slash iPhone 8 production in half to focus more heavily on the next-gen iPhone X, the most significant of its 2017 iPhone upgrades.

The report cites an unnamed source, claiming that this would be the first time in the history of the iPhone that Apple would slash production so soon after the device went on sale.

So far, there have been mixed reports about the success of the iPhone 8 and 8 Plus. Reviews described it as a nonessential upgrade, especially coming the same year as the big tenth-anniversary iPhone X. According to a report from “lifestyle engagement platform” Localytics, the iPhone 8 and iPhone 8 Plus have seen lower adoption rates than any September launch of an iPhone since at least 2013.

However, others have suggested that the handsets are a whole lot more popular than that. Respected Apple analyst Ming-Chi Kuo noted that, while the launch day queues for the iPhone 8 and 8 Plus were shorter than in previous years, he estimates that demand is split roughly 50/50 for the iPhone 8 and 8 Plus vs. the iPhone X.

Kuo has also estimated that the iPhone X could be one of Apple’s biggest hits in years. In a previous investment note, he predicted that iPhone X preorders could exceed 40 million, and may even hit 50 million. If true, this would be a massive achievement for Apple, particularly given the high price of the handset, which some predicted would be a major strike against it.

One other piece of the puzzle is that, until now, iPhone X production has been slowed due to various manufacturing issues. Although those faults now appear to be rectified, it’s likely to be well into 2018 before iPhone X supply is able to equal demand. Given that uncertainty, it’s questionable whether Apple would be smart to start cutting iPhone 8 orders right now.

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