Apple reportedly resumes production of the iPhone X as iPhone XS/XS Max sales lag

When Apple introduced its 2018 iPhone lineup back in September, it announced that the Apple iPhone X would no longer be sold in stores. That made sense because the new iPhone XS would have everything that the iPhone X has, but with upgraded hardware and software. And those looking to save a few bucks could purchase the iPhone XR. But as it turns out, sales of both the iPhone XS and iPhone XS Max are trailing behind Apple's estimates. According to today's Wall Street Journal, this has led Apple to resume production of 2017's iPhone X.

With the weaker than expected demand for the iPhone XS and iPhone XS Max, Apple will apparently fall shot of fulfilling its contract with Samsung to purchase a certain number of OLED panels for these two models. Instead of spending the money necessary to produce more units of the 2018 phones that are just not selling well, it appears that Apple is meeting its contractual obligation with Samsung by restarting production of the iPhone X. The latter is cheaper for Apple to manufacture, and could be sold at an enticing price that will still bring the company a decent profit. Apple and Samsung have not commented on the report.

It would appear that Apple's 2018 models are meeting resistance from consumers. Earlier this month, Longbow Research said that Apple was cutting orders by 20% to 30% for the iPhone XS, iPhone XS Max and iPhone XR. On the other hand, the firm said that Apple was supposedly increasing orders for last year's iPhone 8 and iPhone 8 Plus. Today's Wall Street Journal also noted that the iPhone 8 is the most popular smartphone in Japan where it accounted for more than 20% of smartphone sales from October 26th through November 20th. The iPhone XR was next with approximately 13% of smartphone sales in the country during the same period.

If this report is true, it still isn't clear when and where Apple would start offering the iPhone X again, and how the device would be priced.