Report: Apple to cut iPhone 8 production in half ahead of iPhone X launch

iPhone X

A new report in the Taiwan-based newspaper Economic Times (via Reuters) claims Apple plans to cut iPhone 8 and iPhone 8 Plus production by nearly 50 percent in November and December. Cutting production of its latest flagship iPhone before the holiday shopping season would typically be a bad sign, but Apple is most likely preparing for the launch of the iPhone X.

Analysts believe that Apple plans to focus on the iPhone X which delivers a radical new design and new Face ID feature. However, Apple shares still "fell 1.5 percent in premarket trading on Thursday as brokers and traders speculated over poor demand and cuts in production of the iPhone 8," according to Reuters.

KeyBanc Capital Markets analyst John Vinh reported earlier this week that based on carrier store surveys the iPhone 7 is outselling the iPhone 8. The low sales of Apple's new iPhone are most likely due to consumers waiting for the iPhone X.

The iPhone X offers a new edge-to-edge display and is the first Apple handset to ship without a physical Home button. It also comes with Apple's new Face ID technology which replaces Touch ID and allows users to send Animojis.

The iPhone X will retail starting at $999, compared to the iPhone 8 which starts at $699. The major price leap will help boost Apple's margins. One analyst believes iPhone X production will shift to 60-70 percent in December and continue higher yields than the iPhone through March.

The iPhone X will begin shipping in November. Pre-orders open on October 27th.


oh dear