Piling inventory at Apple’s major suppliers are hinting at Apple axing the pricey iPhone X.
While Apple’s iPhone X has been one of the most aspirational gadgets of the year, it’s a no-brainer that Apple’s ‘notched phone’ is an expensive affair and is limited to the affluent. Therefore, retailers all around the world keep offering discounts to keep the stocks rolling. However, it seems that Apple isn’t managing to sell enough units of the iPhone X and might be considering axing the Apple flagship pretty soon, Deccan Chronicle reports.
TSMC, one of Apple’s leading iPhone component suppliers, predicted that the earnings for the second quarter will be lower than expected, thanks to weaker demand in the mobile industry. Not only TSMC, several other suppliers for Apple have been predicting weaker revenue income. Drawing conclusions upon this, Mirbaud Securities analyst Neil Campling mentioned in an interview to CNBC that Apple is possibly not purchasing components for its flagship iPhone X and might be considering discontinuing the model very soon. He mentions that TSMC is witnessing record surplus of inventory at its factories, indicating that Apple isn’t purchasing components for its flagship iPhone X. The report claims that Apple has stopped making further units of the iPhone X and will be clearing the existing stocks over the coming months.
“With the declines in iPhone X orders and the inventory issue at TSMC at record highs, which basically reflect a need to burn off inventory. Why? Because the iPhone X is dead,” he added. The iPhone X is Apple’s most expensive models, consisting of elements that are pretty expensive to manufacture, especially the FaceID sensors. “The simple problem with X is that it is too expensive. Consumers are turning their backs on high-priced smartphones,” he stated.
Instead, it’s predicted that Apple will solely rely on the three rumoured iPhone models expected to launch this September — a 6.1-inch LCD iPhone expected to be priced around $550 and two OLED models as the successor to the iPhone X. Speaking of OLED panels, Apple’s second display panel supplier LG Display has hit issues with its manufacturing and won’t be able to supply Apple with new OLED panels. Therefore, it’s expected that Apple will keep using Samsung’s OLED panels for the upcoming premium iPhone models.