Apple tells iPhone X component suppliers to slow down shipments


iPhone 8
Apple is still trying to figure out the demand for its iPhone 8 and iPhone 8 Plus first.
Photo: Apple

You might think that Apple’s busy manufacturing every iPhone X handset it’s able to, but according to a new report, that’s not exactly the case.

In fact, Apple has supposedly told component makers for the iPhone X to withhold shipments until Apple has gauged the sales performance of the recently released iPhone 8 and iPhone 8 Plus.

As per sources in the supply chain, suppliers are currently shipping parts and components that amount to only around 40 percent of the quantities originally planned for the initial production of iPhone X.

Even with this being the case, however, these companies are having to up their manufacturing to meet Apple’s requirements due to low yield rates for the iPhone X components. As we noted last week, the iPhone X manufacturing process continues to be plagued with production issues.

Reports have so far been pessimistic about demand (or lack thereof) for the iPhone 8 and iPhone 8 Plus, largely due to demand for the iPhone X. If today’s report is to be believed, though, Apple is still trying to get a bearing on how demand for the new handsets breaks down.

Supply sources note that Apple’s behavior with the iPhone X isn’t unprecedented. Apple reportedly adopted the same strategy previously for iPhone 7 in 2016. In that case, initial shipments of parts and components reached only about 60 percent of the materials originally required by Apple, with the remaining 40 percent being called in 1-2 months later.

As a result of decisions such as these, it is likely that supply of the iPhone X will be severely constrained around launch time, and is unlikely to balance with demand until well into 2018. While that does mean that Apple will likely experience great than expected sales next year, it also means that fans may not be able to snap up their desired handset quite as soon as they might like.

Which iPhone model, if any, are you hoping to buy? Leave your comments below.

Source: Digitimes


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