Apple shares dropped almost two percent on Monday (1,9% to be exact) following a report about the company ordering a significant cut in its high-end iPhone X production. According to a Nikkei report earlier on Monday, the biggest company in the world (that’s Apple for you) told its suppliers to cut iPhone X production to twenty million units for Q1 of 2018, which is basically half of what was projected initially, i.e. back in November, Apple was looking at manufacturing and selling 40 million iPhone X units in the first quarter of 2018.
Due to the iPhone X’s weaker than expected sales figures, Apple decided to cut back on its production, followed by a 1.9% drop in Apple shares after the public found out about the report. Since January 22, Apple stock has dropped almost five percent (4,9%), which translates into 45 billion being wiped out in terms of shareholder value in the past week alone.
There were several articles, both in the Wall Street Journal and Nikkei, emphasizing the dramatic lack of success in terms of sales figures of Apple’s latest and greatest iPhone X. Apple itself reduced its sales forecast for iPhone X back in December.
And that’s sad, considering that the Apple X is the company’s best smartphone to date, featuring an OLED display, which unfortunately failed to catch on with Apple aficionados, yet the market-failure of the smartphone is most probably due to its prohibitive price tag: $999 in the US (contract-free) and even more in other markets. The iPhone X also boasts a face recognition system and wireless charging, yet it’s pretty far from having groundbreaking technologies like previous models had. The company is expected to maintain a total production-target of thirty million units for its (lower priced) iPhone 8 and 8+.