Apple is usually pretty great at gauging demand for its products. Something seems to have gone wildly wrong for the iPhone X, however, since the company is now reportedly trying to “burn off” its excess supply of the devices after disappointing adoption rates.
According to a source speaking with Fast Company, Apple ordered the production of way too many iPhone X units in the last calendar quarter of 2017, and is now dealing with excess supply.
While iPhone X production is continuing, it’s dwindled to just 8 million units produced in the current quarter 2018. As an illustration of how small that number is, Apple sold a total of 77.3 million iPhones during last year’s holiday quarter. Of these, the iPhone X reportedly made up about 27 million of the units.
Disappointing sales for the iPhone X
A source cited in the article says that Apple is disappointed with sales, and the company is now questioning its decision to release a smartphone with a $1,000+ price point. As a result, customers shouldn’t be surprised to see more affordable pricing for the 2018-era iPhone refresh.
This isn’t the first time we’ve heard about disappointing sales figures. A number of Apple’s suppliers have been hit by the weaker-than-expected demand, and have reported disappointing financial quarters as a result.
It’s also not the only example of Apple seemingly misjudging demand for its new devices. The pricey HomePod seemingly hasn’t been close to the hit that Apple expected, which could wind up locking Apple out of the burgeoning smart speaker market.
Source: Fast Company