Is Apple Asking Suppliers To Go Slow With iPhone X Production?

Is Apple Asking Suppliers To Go Slow With iPhone X Production?
Image source: Apple

We’re hearing yet again that the iPhone 8 might be struggling to attract consumers. Bloomberg recently hinted that the iPhone 8 may not be selling as well as it was expected to be. Now in a disappointing and shocking report, Digitimes claims that the U.S. firm has asked its component suppliers to slow down component shipments for the Apple iPhone X production.

According to Digitimes, suppliers are presently shipping components that contribute only 40% of the quantity planned for the Apple iPhone X production. However, some suppliers are not even reaching the 40% level, and therefore, they need to scale up production of the iPhone X.

This is not new for Apple, as the company was said to have adopted the same strategy during the iPhone 7 release last year. At that time also, initial shipments of parts and components reached only 60% of the materials originally required by the vendor. The remaining 40% of the order was fulfilled a couple of months later, reports Digitimes.

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Since some suppliers are taking more time to manufacture their iPhone X components, this could be one reason why Apple is asking all suppliers to slow down so that it has an equal number of components when the iPhone X launches in November.

The problem, however, remains the same, which is that Apple is facing challenges in manufacturing the iPhone X. Recently, KGI Securities analyst Ming-Chi Kuo said that the Apple iPhone X  production is at less than 10,000 units per day and that the device will not be able to reach supply-demand equilibrium until at least the first half of next year.

According to Digitimes, by asking suppliers to slow down, the company might be testing the waters to figure out how well pre-orders are going before shifting the Apple iPhone X production up to full throttle. The company also might be giving some time to the iPhone 8 and iPhone 8 Plus before pushing out the iPhone X.

Apple’s iPhone 8 started on a sluggish note with no long queues and less excitement among customers seen at stores. According to CNBC, Citi Research lowered the sales estimate for Apple’s September quarter, expecting lower-than-expected demand for the iPhone 8 could force the company to miss consensus estimates. Analysts, however, acknowledge that shorter lines in front of the stores could be because customers are awaiting the iPhone X before making their final purchase. The iPhone X is all set to launch on November 3 with an entry price tag of $999. Jim Suva of Citi Research reiterated a Buy rating on Apple with a price target of $170.

Apple’s iPhone 8 has one of the most durable glass casings ever in a smartphone, and this could also be the reason for less excitement among buyers. A teardown of the iPhone 8 by iFixit reveals that beneath the glass cover, there is a metal plate with two holes for adjusting the wireless charging coil.

A lot of adhesive has been used to hold the glass and metal plate together. This suggests that a third-party repair glass panel “is either going to be very difficult or very expensive, even compared to the screen,” says The Guardian.

At 12:07 p.m. Eastern, Apple shares were down 1.06% at $150.31.

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