Apple cutting production of iPhone X by half: Report

Apple cutting production of iPhone X by half: Report

Apple's move to launch three new iPhones seems almost certain now

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Apple is halving production of its highest-end iPhone X, according to a report from Nikkei, out of Japan. Targets are now at about 20 million devices for the first quarter, a big drop from its original sales estimates of nearly 50 million units, and potentially tied to poor sales over the holidays.

Apple alerted its suppliers of production changes for the iPhone X, even as the company continues to maintain targets for its lower-priced models including the iPhone 8, iPhone 8 Plus and iPhone 7.

The iPhone X is barely two months old, and went on sale in November. The phone features an OLED screen, which is an expensive component, and helped to push the smartphone to its sticker price of $999. Poor sales even took a bite out of Apple's stock at the end of 2017, causing it to fall 2.5 percent.

Reports say Apple has plans to abandon this first iteration iPhone X for three new models in the next 12 months — one which will include a lower-priced iPhone closer to the $700 to $800 range. While it will lack the OLED screen and stainless steel casing, this model will include Animoji, the fun feature powered by Face ID.

And there are already signs that Apple is moving this direction. During last night's Grammy Awards, Apple pushed out multiple commercials with singing Animoji — including one where aliens, unicorns and panda sing to Childish Gambino's "Redbone." Never shown however? The iPhone X —just the name.

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