Apple reportedly resumed the production of iPhone X. Even though iPhones sell well, The Wall Street Journal reported that the new iPhones i.e. the XS and XS Max might not be well selling as Apple hoped they would. As a result, they resumed the production of last year’s iPhone X.
The decision to produce more iPhone X devices is reportedly due to Apple ‘s desire to meet the terms of its agreement with Samsung. The agreement allegedly stipulated that Apple would purchase a certain number of OLED displays from Samsung. As the iPhone XS and XS Max may not sell as well as expected, Apple is likely to lose some money and not meet the terms of the contract.
The iPhone X then, is reportedly seen as a solution to Apple’s problem. Because it would be cheaper to produce the iPhone X than to produce the XS and XS Max due to cheaper components and manufacturing component. Apple’s iPhone X production was halted with the launch of iPhone XS and XS Max.
Unfortunately, it may not be the only problem for Apple that Samsung ‘s terms and conditions are not met. In early November, Apple reportedly told some of its suppliers that they should abandon expectations of the iPhone XR sales in the market. They informed three of it’s suppliers to reduce or eliminate production of iPhone XR, as expected overall sales is expected to be the lowest than expected.
What do you think about the decision? Are the high prices catching up on Apple? Post your views in the comments down below.
