Apple to Settle for Half its Planned Shipments in 2017 for the iPhone X

The Nikkei has learned that initial shipments of the highly anticipated iPhone X of Apple, Inc. are expected to total to only half the planned amount for this year at just around 20 million units.

The decrease stems from the struggles of the California-based company to solve technical issues with components that are supporting the new face authentication feature of the iPhone X.

The iPhone X is the first iPhone to do away with the home button and use an organic light-emitting diode display. At the start of mass production, defects took place in the bonding process for the OLED panels, and even though the said problem was largely fixed in July, problems continued in the assembly of the face authentication module. Manufacturers were only able to improve the first pass yield or the number of good units toward the end of September.

Currently, the iPhone X is being produced at a rate of 10 million units per month. However, with the sales scheduled to start on November 3, Apple is likely to provide only 20 million units in 2017.

It is believed that Apple has already started negotiations with other manufacturers regarding the additional production of certain parts, and there is a possibility that output volumes could rapidly improve.