Apple Reportedly Resumed iPhone X Production Due To Agreement With Samsung

Apple’s iPhone XS and iPhone XS Max aren’t selling as well as expected and a new report claims that Apple has resumed production of last year’s iPhone X. The tech giant is also reportedly cutting the price of the iPhone XR in Japan.

Apple has decided to resume production of the iPhone X allegedly due to its agreement with Samsung, as reported by The Wall Street Journal. Samsung is Apple’s supplier of OLED screens and part of their agreement is that Apple would have to purchase a certain amount of OLED displays. With Apple cutting down production on the iPhone XS and XS Max, the company wouldn’t be able to meet its terms with Samsung. Resuming production on last year’s iPhone X may have been Apple’s only solution.

If Apple is unable to meet the terms of the agreement, the company is presumed to lose a bit of money, as pointed out by Android Authority. The iPhone X is already a year old and it is thought that producing it now would be cheaper than the iPhone XS and XS Max. This is because the iPhone X’s components and manufacturing equipment are cheaper.

It’s important to note that Apple actually halted production of the iPhone X and stopped selling it in stores when the iPhone XS and XS Max were first released. Although resuming production of the iPhone X may solve Apple’s dilemma, it’s quite unclear how the one-year-old device will be able to fit into the current lineup of iPhones that already seems a bit crowded at this point.

Apple is also currently selling the iPhone XR, the new 6.1-inch model with a “Liquid Retina” LCD display. With a starting price of $749, the handset is Apple’s most affordable brand new product that’s also available in six colors. It was initially believed that the device would be the most popular and best-selling product in Apple’s latest lineup, but that hasn’t been the case. It was previously reported that Apple also cut production orders for the iPhone XR due to lower than expected demand.

The WSJ also claimed that Apple is preparing to discount the iPhone XR in Japan through subsidies for local carriers. The publication said that the discount might arrive as soon as next week, but no specific date was given. Apple rarely discounts its products and it’s very unlikely that pricing for the iPhone XR will change in the United States or in other regions.