iPhone X Production Reportedly Halved As Sales Disappoint

The release of the iPhone X in November represented a pretty big move for Apple. Not only was it the first iPhone to use an OLED display and ship without home button – something that's been featured on the face of every other iPhone to date – but it was also the most expensive iPhone Apple has ever released. It looks like that $999 price point didn't end up doing it any favors, as new reports are claiming the iPhone X has experienced slower than expected sales.

That report comes from Nikkei Asian Review, which also claims that Apple will cut iPhone X production in half for the first three months of 2018. As it turns out, the iPhone X underperformed during the holiday season, which is usually a time when companies can look forward to higher sales than usual.

Of course, there is a limit to how much your average person will spend on gifts, and $1000 is a lot to spend on the single phone. That's true even in this age of flagships that can cost $800 or more, and when you can save a not insignificant $300 by purchasing a standard iPhone 8, it isn't hard to see why the price of the iPhone X may have scared some people off.

Nikkei doesn't cite any sources in this report, so as always, take its claims with a grain of salt. It's also worth pointing out that halved production numbers for the first three months of 2018 still amount to 20 million units, so it isn't as if the iPhone X is an irredeemable flop. If Apple was looking for a price ceiling for its devices, though, the company may have found it.

Just last week, we heard that Apple might be planning a follow-up to the iPhone X with a next-generation model later this year. We'll keep an eye on the matter to see if sales improve, but assuming this report is correct, that may not happen without a price cut. Stay tuned.