iPhone X to See Just 20 Million Units Shipped in 2017: Report

iPhone X to See Just 20 Million Units Shipped in 2017

HIGHLIGHTS

• Apple has reduced its planned shipments for the iPhone X
• Components powering the Face ID feature hugely facing delay in production
• The pre-order for the new iPhone will begin on October 27

Ongoing production issues are reported to decline the shipments of the iPhone X to as low as 20 million units in 2017. The latest figure is half of what the Cupertino giant had reportedly planned for this year, and is far lower than the previously predicted demand of 40-50 million units that was reported by KGI Securities analyst Ming-Chi Kuo.

According to Nikkei Asian Review, the reason behind the reduced iPhone X shipment projection is the technical issues with components enabling the new face authentication feature called Face ID. Apple is presently producing the iPhone X at a rate of ten million units per month. However, considering the launch scheduled for November 3, shipments would reach only 20 million this year. Kuo recently saidthat 2-3 million iPhone X models will be ready by launch date, which is said to be sufficient at launch itself.

The OLED display panel of the iPhone X was one of the first components that delayed the production process due to some odd issues in bonding its edges on the steel frame. Apple reportedly resolved that issue in July. But as per the latest report, the development of the 3D depth-sensing camera is still difficult to meet the demand, though some improvements have started taking place since the end of September.

Apple is said to have started negotiations with other manufacturers to ramp up the building of individual parts. This would enhance the entire production process over time and help the company increase volumes. Moreover, a meeting was scheduled between Apple COO Jeff Williams and Foxconn Chairman Terry Gou in Taipei on Tuesday where production issues of the iPhone X is believed to be a critical topic.

The demand for the iPhone X is believed to be "substantial" as customers have lack of interest in picking up the iPhone 8 and 8 Plus that was launched last month as minimal upgrades over the last year's iPhone 7 and 7 Plus. But still, it appears that the production lag would abandon the company to reach market equilibrium with sufficient supply.

Pre-orders for the iPhone X will begin in India on October 27, while its sale will start on November 3. The new flagship iPhone model will be available with a starting price of Rs. 89,000 with 64GB storage.