Business

Apple Share Tank 2% Following Reports Of Production Cuts

NEWS WORLD INDIA | 0
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| January 30 , 2018 , 19:38 IST

Slow iPhone X sales have forced Apple to drastically cut down the production of it's most recent handset, as per a report from The Nikkei Asian Review.

Apple, one of the biggest name in the smartphone business saw its share prices tank by 2% at NASDAQ on Tuesday following reports of the cutdown of its flagship model. The total value of the company Apple's market cap is currently $450 billion.

Apple at first intended to deliver 40 million of these handsets at its Chinese production lines between January and March 2018. However, Apple has reportedly sliced this target down to half i.e 20 million.

Apple saw a slowdown in the sales of iPhone X in major markets like the U.S, China, and Europe after an initial buzz following the phone's release in November.

One of the reasons of below expectation sales of the smartphone is the price with the base price being atleast $1,000 in all markets.

The production cost is amplified by the fact that Apple's main rival, Samsung is the principal maker of the phone's OLED displays and reportedly charges Apple $120 to $130 per display.

For the 2018 iPhones, Apple is expected to deliver a successor to the iPhone X in addition a large screen variant, named the "iPhone X Plus"  For these phones, Apple may tie up with LG for their OLED screensin an attempt to reduce production costs.

These enormous cuts in production, don't suggest that the iPhone X has flopped. While Apple's most recent earnings haven't yet been released, it likely has sold a large number of the new smartphones all around.