14 DAY TRIAL // It’s not really a secret that iPhone 8 sales have so far been well below expectations, with even the iPhone 7 selling better than the new model, but it looks like the company is now trying to scale down orders in anticipation of the iPhone X.
A report from Reuters and citing sources close to suppliers indicates that Apple has cut orders for the iPhone 8 and iPhone 8 Plus by as much as 50 percent, though no other specifics were provided. The same report, however, indicates that Apple’s shares fell 1.5 percent in premarket trading, citing “muted demand” for the new models as the main reason.
And while the slow sales of the iPhone 8 might have contributed to Apple’s decision to cut orders for the new model, it’s not the main factor that determined the company to do it.
The imminent launch of the iPhone X
With the iPhone X launching in early November, Apple is well-aware that its anniversary model would basically cannibalize the more subtly-upgraded iPhone 8, so it doesn’t make sense to continue building the regular device at the same pace.
On the other hand, this raises questions as to how Apple estimated demand for the iPhone 8. If the company indeed projected iPhone 8’s sales performance more accurately, such an adjustment would no longer be necessary.
The share drop, however, isn’t such a big deal, especially because a 1.5 percent decline is barely a decline, but more of the typical evolution for a company in the middle of product launches. Apple’s shares are likely to grow substantially after the release of the iPhone X, and analysts even forecasting record levels, with some projecting the firm to become the first trillion-dollar company in the world.
The iPhone X itself will be a rather expensive product, with pricing to start at $999, but most of the analysts claim this won’t be a setback for the majority of customers.