If you were thinking Apple would have trouble selling the anticipated number of iPhone X devices for $999 USD, you were right. According to an article in The Vancouver Sun, Apple will be halving its production of the iPhone X this quarter to 20 million units. Following its announcement of this cut early on January 29, shares decreased more than two percent.
Reportedly, the cut comes after slower-than-expected holiday sales in Europe, the United States, and China. Analysts have suggested what you might have already guessed; the reason the for the slow sales is the high price.
Analysts at UBS say that “a survey of people planning to buy the iPhone showed that the percentage of them looking to buy the iPhone X has dropped to 37 per cent from 43 per cent in an earlier survey.”
Verizon has also chimed in on the issue, saying “their postpaid device activations were lower than last year as people were keeping phones longer.” Longevity of devices, making the new iPhone less relevant, could also be a reason for slower sales.
The iPhone X has been on sale since November, and has been making media buzz for a long time. But at these prices, analysts predict 2018 won’t be a “super-cycle” year for Apple.