Apple Investor’s Nearing Panic
It is likely that you won’t be seeing the iPhone X for very much longer. Many iPhones have long life and usage spans, however, it is expected that the iPhoneX will be around this year and gone the next.
Gordon Kelly, from Forbes, says, “…acclaimed KGI Securities’ analyst Ming-Chi Kuo says disappointing sales of the iPhone X will lead to the cancellation of the model “with production ceasing in the summer”. This would be the first time Apple has cancelled an iPhone model after just one generation since the iPhone 5C in 2014… Kuo believes Apple will enjoy a better end to 2018 with 10% growth as the outgoing iPhone X-inspired designs: a second-generation 5.8-inch iPhone X, 6.5-inch iPhone X Plus and a “$650-750” 6.1-inch iPhone SE replacement, which will be fitted with Face ID. Apple hopes it will be the latter two that once again excite the Chinese market.”
Since the iPhone X saw such great sales in December of 2017, most of Apple’s competitors also launched devices that were on the higher end of the spectrum in order to keep up as it came closer to Christmas. Samsung was one of these companies, however, the lack of iPhone X sales is a bit a concern for them as well. Since Samsung manufactures, and thus makes money from, the OLED screens that are being used in the iPhoneX. Since they are selling the way that it was predicted that they would, it is hurting the overall bottom line of Samsung.
Since iPhone orders are being cut, Samsung has to lower their production of the OLED screens by about ten percent at their A3 factory for the month of January. This is a big deal, since Samsung makes over one hundred dollars for every iPhone X that is sold. The estimations that were in place at first, concerning the expected iPhone X sales, projected that Samsung stood to make about twenty-two billion dollars. This would be the equivalent of Samsung selling about twenty-three million of their Galaxy Note 8’s.
A source stated that, “Samsung is reducing operation at the A3 plant largely due to the remaining investors for the iPhone X. The A3 plant is specially designed to supply panels to Apple only. Unless supplies to Apple do not recover in the coming months, it is unavoidable for Samsung to see weaker earnings this year.”