Nikkei reported yesterday that due to worse-than-expected sales in the holiday shopping season in key markets such as Europe, the United States and China, Apple has informed suppliers that the production target for iPhone X will be cut by half in the first quarter of this year from the original 4000 Under 10,000 to 20 million.
'Our understanding is that the company did offer a drop in the number of components for the iPhone X, but not half as exaggerated,' said Yoshitaka Fujita, vice chairman of Murata Manufacturing Co. Ltd.
Apple shares fell 1.9% just after the report was released, while Apple shares have plunged 4.9% in nearly a week since January 22, bringing the market value to more than $ 45 billion.
Even so, Wall Street and analysts are not optimistic about the expected performance of the Apple iPhone X in the first quarter of this year.Narci Chang, an analyst at JP Morgan Technologies and Semiconductors, said in a research note on Tuesday that the iPhone X orders in the first quarter of this year than the fourth quarter of last year chain decreased by up to 50%, affected by this is expected iPhone X shipments in the first quarter will be 33% less than the previous quarter.
She is expected to cut iPhone X production to 30 million units from 30 million in the first quarter to 20 million units.'We have recently discovered more and more signs of weak demand for the Apple iPhone X. 'She said in the report.
In addition, some Wall Street analysts were concerned about the weak market demand for iPhone X and even downgraded Apple's stock this month after Longbow Research downgraded Apple's stock to 'Neutral' from 'Buy' earlier this month. Apple's iPhone shipments in FY 2018 will be lower than expected.
Shortly thereafter, Atlantic Equities downgraded Apple's stock rating from 'overweight' to 'neutral' and expect Apple's first-quarter sales to fall short of expectations.