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By Malcolm Owen
Thursday, November 22, 2018 at 05:56 am (8:56 am ET)
Apple has revived the production of the iPhone X, according to a report, for questionable reasons. The 2017 version of the iPhone would again be manufactured for sale in markets that still require the legacy device compared to newer models, such as the iPhone XS and the iPhone XR.
iPhone XS Max and iPhone X
The iPhone X has been removed from sale in the Apple Store around the world after the introduction of the iPhone XS and the iPhone XS Max, with the hope that the consumers would like to acquire newer product launches. For models that are actually fully replaced by a newer version, the production of older versions is usually reduced or adapted.
According to sources in the Wall Street newspaper, Apple has resumed production of the iPhone X. Although it is not clear exactly why production has resumed, a person familiar with the sales tactics and production of Apple informed the report Apple produces existing models for selected markets where demand is sufficient.
Production is a way to drive sales and increase margins, sources say, with components for iPhones typically costing less to produce or acquire and depreciated manufacturing equipment in value to make production again viable.
An example is Apple's production with Wistron in India, where the manufacturing partner produces the iPhone 6 in the country, alongside the iPhone SE. In June, it was estimated that the iPhone 6 series accounted for a third of iPhone sales in India.
The report also suggests that the resumption of iPhone X production stems in part from the contract between Apple and Samsung SDI for the production of OLED panels used for iPhone X, iPhone XS and iPhone XS Max. Apple is supposedly contractually obliged to buy a minimum amount of OLED panels from Samsung and, because of alleged cuts in the production of the iPhone XS and the iPhone XS Max, is turned to the iPhone X to use the rest of the offer.
This assertion is questionable for several reasons, one of the key elements being the improbability that Apple does not protect itself against such minimal orders to a level that it would require the manufacture of hardware older. Given that the price of the iPhone XS at launch matches that of the iPhone X, as well as the considerable similarity of the two models, it seems even more unlikely that consumers will choose an iPhone X rather than an iPhone. an iPhone XS or an iPhone XR.
The new production of the iPhone X is part of a report claiming that Apple is reducing the price of the iPhone XR in Japan to increase sales, as operators in the country are apparently ready to begin to reduce the cost of handsets early next week.
Air carrier officials say it is rare for Apple to price a device that has recently been on the market, although it has done so before. "A price reduction within a month of publishing is rare, not only for Apple, but for smartphone manufacturers in general," said a senior official.
Japanese consumers claim that the price of the iPhone XR is too high for the sacrifices that it consents in terms of display quality, cameras and slower transmission speed. The iPhone 8, released in 2017, would still be popular in the country for people looking for an affordable iPhone, as it is both cheaper than the iPhone XR and that's why it's so popular. it was available at the time of the launches of the iPhone XS and the iPhone XS Max.
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