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30 January 2018, 01:16 | Brenda Erickson
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Apple (AAPL.O) shares fell as much as 2.6 percent after the Nikkeireported the company will halve the production target for its flagship iPhone X this quarter.
Recent reports stated that when Apple reveals its new iPhones later this year, it will end production of the iPhone X. Originally, around 40 million iPhone X units were set to be made over the next three months, but apparently this has now been knocked down to 20 million units.
Usually reliable leaker of all things Apple, Ming-Chi Kuo has issued a new report, obtained by MacRumors that casts some serious doubt over an iPhone SE 2 launching later this year.
The KGI Securities analyst noted that the iPhone X2 and iPhone X Plus would each feature 4GB RAM. Nikkei also mentioned that production of the iPhone X faced a components shortage in the wake of its launch, so production can now start to slow as inventory begins to rise.
Kuo's analysis seems to be heavily based on Apple's rollout of the iPhone 8, 8 Plus and X in 2017.
US stocks pulled back sharply on Monday from record levels last week, with the Dow falling more than 100 points, weighed down by Apple after a media reportadded to concerns about demand for the iPhone X. This device could probably use a Full Active LCD display that will offer better technology over the iPhone 8 and 8 Plus display.
The iPhone X Plus has been roaming around the rumor mills for quite some time now. Also, a 6.1-inch iPhone is hinted to be released.
Additionally, the decision is expected to affect suppliers including Sony, Kyocera, and TDK, who provide Apple with advanced camera sensors, additional circuitry, and batteries for iPhone X. Analysts now expect the average selling price for the iPhone segment to hit $757 for both the December and March quarters-more than $100 above the average for the last four periods.
Reuters could not immediately reach Apple's us headquarters for comment outside regular business hours.
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