Production Of iPhone 8 To Be Cut As iPhone X Hits Stores

Reports indicate that Apple may reduce the production of the iPhone 8 Plus and the iPhone 8 by around 50% in the next two months in order make way for the more expensive iPhone X.

The iPhone 8 Plus and the iPhone 8 hit the stores on September 22 while the iPhone X will go on sale starting November 3. Since it is pricier than the iPhone 8 Plus or the iPhone 8, the iPhone X is expected to make money per unit as well as be received with more excitement by customers.

Low demand

This comes at a time when there are various reports indicating that the iPhone 7 which was launched last year is selling more units than the iPhone 8 indicating that there are those who are eagerly awaiting the iPhone X before they open their wallets.

A high demand for the iPhone X will not all be rosy for Apple since it could experience difficulties meeting the demand. This is because it has emerged the sensors of the Face ID feature might strangle production and this could result in the contract manufacturers being unable to make units of the iPhone X as fast as they are being demand.

A study done by Gartner has even indicated that the sales of the iPhone X will have the strongest impact next year when the iconic smartphone will be more readily available. Preordering of the iPhone X will begin on October 27.

Too pricey

This comes in the wake of supply chain sources indicating that Apple is developing next year’s iPhones which will possess many of the features present on the iPhone X but which will be significantly cheaper. According to the sources Apple’s decision to produce an iPhone X-like device at a lower cost has been influenced by price-sensitive Chinese consumers. The starting price for the entry-level iPhone X with a storage capacity of 64GB is $999.

Analysts at Deutsche Bank have sounded the alarm over the high cost of the device saying it was likely to impact sales.

“Generally, when prices go up, demand goes down. A scenario where prices go up and demand goes up seems highly unlikely in our view,” said the analysts.

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