iPhone 7 Outselling iPhone 8; Apple Slashes iPhone 8 Supplier Orders By 50%

EJ Insight

October 20, 2017

Apple has recently slashed orders for iPhone 8 and iPhone 8 Plus by about 50% for November and December, Taipei-based Economic Daily News reports, citing sources in Apple’s supply chain.

This year is “quite rare” that Apple asked to cut production volume of a new product which has just been in mass production for about one to three months, a source in the supply chain said.

Shipments of iPhone 8 and iPhone 8 Plus in November and December are expected to be slashed from 10 to 12 million to five to six million units per month.

The company is also likely to reduce orders for iPhone 8 and iPhone 8 Plus in the first quarter of 2018.

Apple’s usual practice is to launch the new iPhones in September, start mass production in the fourth quarter and cut production in the first two quarters of the following year.

A recent report by KeyBanc Capital Analyst John Vinh said Apple’s older iPhone 7 models are outselling the iPhone 8 ahead of the early November debut of the premium iPhone X.

Vinh wrote in his research report that “many respondents indicated that a meaningful portion of customers is buying iPhone 7 in lieu of the new iPhone 8, given the lack of significant enhancements in the new phone.”

Vinh said another reason for the slow uptick of the iPhone 8 could be the modest promotion by carriers.

“While carriers continue to offer promotions for the new iPhone 8, they have been much more modest compared with those for the iPhone 7 launch last year,” he wrote.

Original headline: Apple slashes iPhone 8 supplier orders by 50%: Report

Copyright 2017 EJ Insight of Hong Kong Economic Journal Co., Ltd. All Rights Reserved.

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