14 DAY TRIAL // It’s a well-known fact that a significant number of iPhone buyers delayed the purchase to get the anniversary iPhone X, and this obviously translates to slower sales for the iPhone 8 and iPhone 8 Plus.
And now that the iPhone X is up for grabs, the iPhone 8 sees even lower sales figures, with assembler and Apple partner Pegatron expecting a substantial cut in orders in early 2018.
Chief Financial Officer Charles Lin of Pegatron said in an earnings briefing that he expects orders to drop by as much as 50 percent in the first quarter of the year. And while the CFO hasn’t named Apple directly, the iPhone maker is currently Pegatron’s biggest client, generating around 60 percent of the company’s revenue.
"We often experience significant seasonality correction in the first quarter, a traditional low period, of the year, and 2018 is no exception. I don't see any good sign to change that at the moment," he was quoted as saying by Nikkei.
All eyes on the iPhone X
The reason is not at all surprising. With the iPhone 8 not selling as fast as the other models and with the iPhone X getting all the attention, it makes sense for Apple to reduce orders for the first and concentrate on the latter. Stronger demand is expected for the iPhone X, which is currently manufactured by Foxconn, also responsible for the iPhone 8 Plus.
Pegatron said its net income dropped 32.4 percent for the 3 months ending September versus 2016 to $120.8 million, adding that the component shortage that hit the mobile industry earlier this year had a dramatic impact on its business.
"We recruited workers earlier this year to meet the demand in high season. However, given the shortages of components, our workers on the assembly line have to wait there with no work to do ... that really added to our expenses," the CFO explained.
Analysts expect iPhone X sales to skyrocket in early 2018 when Apple aligns production with demand, while the iPhone 8 is likely to suffer from declining sales in the coming months.