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iPhone 8 and iPhone X production issues – AAPL stock dropped by 1.5%

Apple is having some problems manufacturing the iPhone X. And also a source from Taiwan claims that Apple has reduced orders for both the iPhone 8 and iPhone 8 Plus by 50% for November and December – not good news for Christmas shopping.

iPhone X release might be delayed

A report from analyst Christopher Case says Apple has not even started production of the iPhone X and the preorders are due next month. Case says that his checks indicate “final production of iPhone X has not yet begun.” Christopher Case thinks that the production of iPhone X will start in late October.

 

While our checks are ongoing, initial feedback from our meetings suggests that final production of iPhone X has not yet begun, with production expected to commence in late-October. That production start is about a month later when compared to expectations a month ago, and about 2 months later than expectations at the end of June.

Numerous reports have highlighted the delays and struggles that ultimately led to the October/November release window Apple announced last week. Now, a new investor note from Barron’s says that Apple has run into even more production issues.

Reports say that iPhone X might suffer delays and will be incredibly hard to come by when it’s released later this year and even further into 2018.

iPhone 8 and iPhone 8 Plus Production Issues

A source in Taiwan claims that Apple has reduced orders for both the iPhone 8 and iPhone 8 Plus by 50% for November and December and AAPL stock dropped by 1.5% following this report. Reuters spotted the report in Taiwan’s Economic Daily News.

Apple no longer gives regular updates on sales numbers but indications from supply channels, phone operators and analysts who track the sector have fueled talk of poor sales for the latest update of the smartphone.

Economic Daily News says this is the first time in the iPhone’s history that production has been cut so early in the cycle.

With iPhone X preorders not yet opend, reduced demand for the iPhone 8 could benefit Apple. Previous reports of iPhone 8 sales have sent mixed messages, KGI suggesting that the iPhone 8 Plus in particular has been seeing ‘better than expected‘ sales, backed by Foxconn revenues, while AT&T says that iPhone 8 sales are 900k down on those of the iPhone 7 last year.

Tim Cook has on more than one occasion warned that supply chain reports are a poor proxy for orders, due to the company’s complex network of suppliers, many components having multiple sources.

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