Apple posts monster earnings with $88.3 billion in revenue; iPhone sales fall short

Apple has just announced its financial results for the Christmas quarter. The company has sold fewer cell phones than a year ago, but the average selling price has increased significantly. This is a clear sign that the high price of the iPhone X has influenced the ASP. And the iPhone X could have influenced the ASP only if Apple had sold a ton in November and December. In fact, Apple sold more than 77.3 million iPhone units in the quarter.

But a recent report from Korea suggests that Apple will substantially reduce production of the iPhone X in the quarters of March and June of this year. And Apple could completely discontinue the iPhone X in the second half of the year.

Reports a few weeks ago said Apple plans to shut down the iPhone X when its replacement devices arrive at the end of the summer. This would be the first of the iPhone 5, which does not remain a one-year iPhone for at least another year of sale in Apple's lineup. However, Business Korea now claims that Samsung partner companies said Apple will buy only 20 million OLED screens in the first quarter of the year, a 50 percent decline in sales. The volume would be halved again in the next quarter.

The unnamed industry sources apparently believe Samsung's revelations mean Apple will suspend the iPhone X this year. Since Samsung is the only supplier of OLED panels for the iPhone X, the Apple controls with Samsung screen reflect the future production of the iPhone X.

Component manufacturers are worried about the decline in order quantities, which experts say is unusual. Apple is expected to produce fewer iPhones in March and June each year compared to December time, but Business Korea indicates that the drop in orders this time is significant.

Samsung plans to offset the decline by selling more OLED panels to China-based smartphone makers, Business Korea said.

A Nikkei report mentions a few days ago the same 20 million and 40 million figures that Business Korea mentions in its own history. But Nikkei does not have a Samsung display. Another report indicated that Samsung is reducing the production of OLED panels in a factory that manufactures screens mainly for Apple by 10% rather than 50%. Meanwhile, other Apple suppliers have reported that the decline in orders is not as important as reported.

Apple is expected to release three iPhone X successors this autumn. Each of them comes with Face ID and full-screen designs, and OLED screens are used in at least one new model.