- Apple reportedly resumed production of last year’s iPhone X.
- The decision is allegedly due to Apple wanting to meet its agreement with Samsung to buy a certain number of OLED displays.
- The decision is also allegedly due to the iPhone XS and XS Max not meeting sales expectations.
Even though iPhones typically tend to sell well, The Wall Street Journal reported that this year’s iPhone XS and XS Max might not be selling as well as Apple had hoped they would. As a result, Apple resumed production of 2017’s iPhone X.
The decision to produce more iPhone X units is reportedly due to Apple wanting to meet the terms of its agreement with Samsung. The agreement allegedly stipulated that Apple would buy a certain number of OLED displays from Samsung. Because the iPhone XS and XS Max might not be selling as well as expected, Apple presumably stands to lose quite a bit of money and fail the terms of the agreement.
The iPhone X, then, is reportedly seen as a solution to Apple’s dilemma. Because it is now a year old, the iPhone X is thought to be cheaper to produce than the iPhone XS and XS Max due to cheaper components and manufacturing equipment.
Keep in mind that Apple halted iPhone X production when it released the iPhone XS and XS Max. How the iPhone X will fit into Apple’s busy iPhone lineup is anyone’s guess.
Unfortunately for Apple, failing to meet the terms of agreement with Samsung might not be its only issue. Earlier in November, Apple reportedly informed several of its suppliers to temper expectations for iPhone XR orders. Apple also reportedly informed three different suppliers to reduce or eliminate production lines for the iPhone XR, with overall sales for the holiday season likely lower than expected.
It also does not help that Apple’s recent earnings call noted that the company will no longer provide iPhone sales numbers moving forward. Perhaps the iPhones’ high prices are catching up to Apple, but none of this paints a great picture for the company’s holiday quarter.