Apple Inc. (NASDAQ: AAPL) shares fell about 2 percent on Monday after a report said the iPhone marker halve its iPhone X production for the first quarter.
Nikkei reported on Monday that Apple notified suppliers that it had decided to cut iPhone X production to 20 million units for the first three months of the year, from its previous target of 40 million units the company set in November.
The iPhone X, apple’s first smartphone that featuring a OLED display, starts at $999. It is apple’s most expensive phone ever.
Apple’s shares fell more than 2 percent in the early trading in New York. It is now trading at $168.77. The stock fell about 6 percent from its high of $180.10 it hit earlier this month.
Several reports from Wall Street also raised the concerns over the weak demand of iPhone X.
According to CNBC, J.P. Morgan analysts Narci Chang wrote in a research note last week that the production of the iPhone X may drop 50 percent between the December and March quarters.
According to Reuters, Cannaccord Genuity analysts also lowered their estimate of iPhone shipment in the second quarter. They wrote in a note: “Our survey work indicates iPhone X sales were strong during the December quarter but sales appear slower in January, more in line with normal seasonal trends.”