Apple to launch four new iPhones this year?

Apple is cutting production of the iPhone X by half reports

Apple (AAPL.O) shares fell as much as 2.6 percent after the Nikkei reported the company will halve the production target for its flagship iPhone X this quarter. The South Korean giant is now the only company that can guarantee a steady supply of the screens.

For example, Murata Manufacturing has been churning out its MetroCirc circuit boards - key to making the phones as thin as they are - around the clock since early January.

Apple's decision is expected to weigh down output of Sony's camera sensors, Kyocera's circuit boards and TDK's batteries as well. Milunovich expects Apple to report an earnings beat, but deliver a "moderately disappointing" March forecast. Nikkei also mentioned that production of the iPhone X faced a components shortage in the wake of its launch, so production can now start to slow as inventory begins to rise. Based on our latest consensus estimates, the company is expected to post total iPhone unit sales of 79.791 million, up about 1.9% from the 78.290 million reported in the prior-year quarter.

KitGuru Says: The iPhone X was a gamble in several ways.

As for the fate of the iPhone X, it is speculated to remain in the market, though the price may possibly be lowered in the coming months.

"Apple will not directly control price since it is against policy", said one of those cited above.

According to market tracker Counterpoint Research, the Rs 30,000-plus smartphone segment grew 20% in 2017 over the previous calendar year, led by OnePlus, Apple and Samsung.

The iPhone X, which features an edge-to-edge display and facial recognition technology to unlock the phone, went on sale in November in the United States. And higher prices can help the company meet revenue growth targets even if unit sales are weaker.

The technology sector's.SPLRCT 0.50 percent drop weighed the most on the markets, but the biggest decliners were the defensive sectors - utilities, real estate and telecoms, all down more than 0.8 percent as US 10-year treasury yields hit their highest since 2014.

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