Apple stock falls on reports of low iPhone 8 sales

 

Apple’s shares fell more than 2.5 percent on Thursday as brokers as well as also traders speculated over poor demand as well as also cuts in production of iPhone 8, ahead of the November launch of the 10th anniversary iPhone X.

Apple no longer gives regular updates on sales numbers nevertheless indications coming from supply channels, phone operators as well as also analysts who track the sector have fueled talk of poor sales for the latest update of the smartphone.

KeyBanc Capital Markets analyst John Vinh reported earlier that will week that will a carrier store survey suggested the iPhone 7 was outselling the brand new phone just a month after the latter’s launch.

The iPhone X, eagerly awaited by fans, will go on sale coming from Nov. 3 as well as also may also be weighing on demand.

Some analysts cited a report in Taiwan-based newspaper Economic Times, in which an unnamed source talked of a 50 percent cut in orders for the iPhone 8.

Analysts believe Apple will be likely to focus more on iPhone X, which looks radically different with an edge-to-edge display, as well as also will retail coming from $999, boosting the company’s margins.

Rosenblatt Securities analyst Jun Zhang said he believed Apple could cut iPhone 8 production as well as also shift capacity toward iPhone X as the premium phone will be required to sell out quickly.

“Our research suggests the production mix was 50/50 between iPhone 8/8 Plus as well as also the iPhone X, nevertheless iPhone X allocation could shift up to 60-70 percent in December as well as also even more inside March quarter,” Zhang wrote in a note.

Deutsche Bank analysts, however, played down the importance of any cut in iPhone 8 production in favour of iPhone X.

“We think the market could have over-focused on the production swing in different SKUs, nevertheless overlooked that will the overall iPhone production will be largely on track,” they wrote, differentiating between different Taiwanese suppliers.

“We still expect Hon Hai, Pegatron as well as also Wistron to account for 68%-70%, 24%-26% as well as also 5%-6% of total production in 4Q17 (similar to 3Q17). Pegatron as well as also Wistron should take more iPhone 8/8Plus orders, while Hon Hai will be shifting its resource to iPhone X.”

Shares of Apple were trading down $4.22, or 2.64 percent, at $155.54, just before noon ET on Thursday.

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