The iPhone X may be the latest and greatest from Apple, but the price may be giving consumers some pause when it comes to buying it.
According to a new report from Bloomberg, sources within the supply chain are saying that Apple has cut its order of 50 million iPhone X units for the first quarter of 2018 down to just 30 million units. The news has led to a decline in the stock prices for numerous Apple suppliers.
The information is coming from multiple sources such as Sinolink Securities Co. analyst Zhang Bin. In a report issued on Monday, Zhang sees shipments for the first quarter as low as 35 million units, a drop of 10 million units from the previous estimate. “After the first wave of demand has been fulfilled, the market now worries that the high price of the iPhone X may weaken demand in the first quarter,” he wrote.
The sentiment was also shared by JL Warren Capital LLC in a note issued to investors the previous Friday. The firm adjusted its estimates down to 25 million units saying that it reflects “weak demand because of the iPhone X’s high price point and a lack of interesting innovations.”
How many of any given units of an iPhone model has always been tough to predict as the company only ever gives one lump sum total in its quarterly earnings reports. All we ever hear is a total number and how it compares to projections and year-over-year.
Apple has said, however, in the past that using supply chain reports to pinpoint future trends is difficult for anyone outside of the company due to the complexity by which its products are assembled.
We should know some time in late April how the company fared in the first quarter of the year, but indications are that the iPhone X may not be as big a hit as Apple hoped.