JPMorgan Claims Apple iPhone X Production Down 50 Percent

Apple’s iPhone sales came into question Wednesday (Jan. 23) after JPMorgan warned in a research report that growth in sales of high-end smartphones has hit a plateau. The tech company is likely reducing production of its latest and greatest edition, too: the iPhone X.

According to a CNBC report citing the JPMorgan research, Narci Chang, senior analyst at JPMorgan Chase, said manufacturing of the iPhone X could be down 50 percent on a sequential basis.

Chang isn’t the only one on Wall Street to express concerns about iPhone X demand. Earlier this week, securities brokerage company KGI Securities predicted Apple would discontinue the first version of the iPhone X when the second generation of the high-end smartphone rolls out later in 2018. KGI Securities analyst Ming-Chi Kuo said in a research report, covered by MacRumors, that if Apple kept the current iPhone X in its lineup when it launches the second generation, but lowered the price, it could hurt sales of the newer device.

The analyst expects Apple to roll out a 6.1-inch iPhone with Face ID and an LCD display in the second half of this year. That device is predicted to sell for either $650 or $750 in the U.S., much lower than the $999 starting price for the iPhone X. In the same memo, Kuo reduced his lifetime sales forecast for the new iPhone X from 80 million to 62 million phones.

On the more bullish front, CNBC pointed to research firm Canalys, which estimates Apple sold 29 million iPhone X units in the fourth quarter and that the iPhone X was the most shipped smartphone during the holiday shopping season. How the iPhone X fared during the holiday season and the current quarter is anyone's guess, because Apple no longer provides guidance on shipments.

A company spokesperson did not immediately respond to CNBC’s queries about the JPMorgan research report.



The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.