An extremely credible source has leaked a report that states Apple will be cancelling the iPhone X this summer due to slow sales.
AppleInsider has managed to obtain a report from acclaimed KGI securities analyst Ming-Cho Kuo that say’s Apple are disappointed with sales of the expensive handset which has led to a decision to cancel production in the summer. This in unprecedented for Apple and marks the first time a handset has been cancelled in its first year since the iPhone 5C in 2014.
The Chinese market has been mentioned as a large factor in the cancellation and the report cites China’s disinterest in the device as a main reason. China has been falling out of love with Apple for a few years now, favouring home brands over foreign. And big screen’s dictate the market and the iPhone X’s notch has been seen as removing too much usable space. The iPhone 8 Plus offers more screen for less cost.
A recent Cowan survey backs up these points claiming interest in new iPhones has hit an historic low point.
However, it’s not all bad news for the company. The iPhone X may not be bringing about Apple’s much talked about sales “Super Cycle” – forecasts predict that Apple will still see a 5% growth in the first half of 2018 down to Apple having three premium model phone’s on sale at the same time in the iPhone 8, iPhone 8 Plus and iPhone X.
Kuo also predicts Apple will enjoy an even better end to 2018 when they release this year’s newest iPhone offerings of which there are apparently going to be three iPhone X inspired devices. A second gen iPhone X with 5.8” screen, an iPhone X Plus with 6.5” screen and a new iPhone SE with 6.1” screen and Face ID.
It has already been confirmed however, that none of the 2018 iPhone X variants will have a reduced notch that the company is working on for 2019.
In a market that globally, is predicted to shrink by 5% – growth of 5% and 10% respectively shows that Apple is still on the right track, albeit at a slower pace to previous years. Cancelling 2017’s iPhone X could be a smart move, allowing them to release “new” models of the phone at full price, rather than having to discount an expensive piece of hardware amid falling sales.