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Apple Cuts Production

Ahead of iPhone X Launch, Apple Cuts Production on iPhone 8

October 19, 2017

Apple cuts production on the other 2017 iPhones.

With just eight days to go before pre-orders begin for the iPhone X, there’s word Apple has cut production significantly on the iPhone 8 and iPhone 8 Plus. Some analysts say there’s been a 50 percent cut in orders, according to Taiwan-based Economic Times (via Reuters).

In a new research note, Rosenblatt Securities analyst Jun Zhang explains that Apple could be cutting production on the iPhone 8 and shifting capacity towards the iPhone X.

He explains:

Our research suggests the production mix was 50/50 between iPhone 8/8 Plus and the iPhone X, but iPhone X allocation could shift up to 60-70 percent in December and even more in the March quarter.

Not everyone agrees with this assessment, however.

Deutsche Bank analysts, for example, played down the importance of any cut in iPhone 8 production in favor of iPhone X.

We think the market could have over-focused on the production swing in different SKUs, but overlooked that the overall iPhone production is largely on track.

Historically, Apple’s been very good at gauging supply versus demand for its new products. Therefore, I’m not necessarily buying the 50 percent number. Nonetheless, until Apple announces its FY17 Fourth Quarter results on Nov. 2, we won’t know how good or bad early iPhone 8 sales have been.

The iPhone X, iPhone 8, and iPhone 8 Plus were all announced last month. However, the iPhone X won’t be released until Nov. 3 with pre-orders starting on week earlier on Friday, Oct. 27.