Bloomberg reports that the iPhone X sales are disappointing. As a result, Apple has decided to purchase fewer parts for the device from its suppliers. Whereas the manufacturer initially intended to produce 50 million copies, this number has now been reduced to ‘only’ 30 million.
According to the renowned business magazine Bloomberg, Apple has told its suppliers to produce fewer iPhone X devices. Where the original production orders amounted to 50 million, this has now been reduced to ‘only’ 30 million. Many component suppliers are located in China, and therefore the news also affects these companies. So the stock price of Apple dropped by 2.7% to 170.2 yesterday when the news came out.
Chinese Suppliers Also Hit By Disappointing Sales
The Chinese and Taiwanese companies producing the iPhone X parts also saw a drop in shares. For example, supplier Lens Technology Co. and Largan Precision Co. fell on Monday. While Lens Technology Co. recovered some of the losses, Largan’s shares price continued to drop.
Foxconn which assembles the iPhones saw the lowest drop in its shares since March. General Interface Solution Holding Ltd. saw a massive 8.4% drop.
“iPhone X is too expensive”
Hon Hai Precision Industry Co.’ (also known as Foxconn), main production plant where the iPhone X is put together, has stopped accepting new staff. According to anonymous sources who have spoken to Taiwanese Economic Daily News, this has to do with the fact that Apple will produce 40 percent less iPhone X devices.
Research agency JL Warren previously warned that the sale of the devices would soon be stoked. This would have to do with the fact that the real enthusiasts, the so-called early adopters, have already managed to lay their hands on their devices. For the time being, however, the large crowd is cautious about pulling the wallet.
A representative of JL Warren says that the average consumer finds the device too expensive and sees little innovation.