Apple supplier Japan Display reportedly began cutting production of liquid crystal display panels for the iPhone XR in December, sales of which have reportedly proved disappointing, according to the negative Nikkei Asian Review.

The reduction is expected to lower output by about 30% from November peak levels and marks a potential setback for the company known as JDI, which had seen the XR supply contract as key to breaking a four-year streak of annual losses.

Domestic factories have gradually throttled down output of panels for the iPhone XR and will halt assembly for 10 days around the New Year's holidays.

Last month, the company lowered its sales forecast for the year ending next March to a growth between 5% and 15% from its previous range of 10% to 20%. It also cut its operating profit margin estimate.

Apple positioned the XR, which went on sale on Oct. 26, as the mass-market model in its iPhone X series. The phone has a lower price than other models. Japan Display supplies a majority of panels for the device.

On January 30th the Nikkei Asian Review reported that "Apple to halve iPhone X output on weak holiday sales." There was a lot of skepticism about the strength of iPhone X sales when it first went on sale and the Nikkei played the negative card as usual.

Just two days later on February first of this year, during the company's financial conference call, Apple's CEO stated: "We're thrilled to report the biggest quarter in Apple's history, with broad-based growth that included the highest revenue ever from a new iPhone lineup. iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November."

The Nikkei Asian Review was proven wrong and it was by no means the first time.

On November 28th, Reuters report that Apple's VP of marketing Greg Joswiak had told them that the "iPhone XR has been the company’s best-selling iPhone model every day since it went on sale in mid-October." He added that "the iPhone XR is currently Apple’s “most mainstream product and our most popular iPhone."

Who will be proven to be right about the strength iPhone X over the holiday season? Without Apple publishing iPhone data, the Nikkei Asian Review is likely to get away with another false rumor about Apple's iPhones unless Cook decides to make a contrary statement during the company's next quarterly conference call. Stay tuned.