Apple Shares Dip Amid iPhone 8 Sales Concern

Shares in Apple have fallen slightly amid concern over poor demand for its new iPhone, and cuts to its production run.

Apple shares reportedly fell 1.5 percent in premarket trading on Thursday.

Apple began selling its iPhone 8 on 22 September for $699 (£525) for 64GB handset, whereas the iPhone 8 Plus will set buyers back by $799 (£600).

Poor Sales?

However, according to Reuters, Apple is no longer giving regular updates on sales numbers of the iPhone 8, but indications from supply channels, phone operators and analysts have apparently fuelled talk of poor sales for the smartphone.

It also pointed to KeyBanc Capital Markets analyst John Vinh, who reported earlier this week that a carrier store survey suggested the iPhone 7 was still outselling the iPhone 8.

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

Of course, demand for the iPhone 8 could be dampened down by the fact that Apple is putting its 10th anniversary iPhone X on sale on November 3.

This device is a great deal more expensive (from $999) but it does offer an edge-to-edge display and no home button.

Shares of Apple on Nasdaq were trading down 2.45 percent to $155.77 as of 3pm BST Thursday afternoon.

Expert Predictions

There has been questions for a while now as to whether Apple complicated its device range too much, and whether the iPhone X simply costs too much.

“While it’s satisfying to see the new iPhones pack a slew of new features, boasting everything from a depth-sensing camera to the iPhone X’s Animoji animated emojis, Apple still faces a challenge in convincing both the uninitiated and long-term fans alike that these new devices are the true innovation the market has long needed,” Ernest Doku, mobile expert at uSwitch has previously said.

“Apple is hoping the later availability date for iPhone X will not affect iPhone 8 sales this quarter,” Ian Fogg, mobile and telecoms analyst at IHS has previously said. “Apple’s lower iPhone 8 pricing should limit the impact, but it remains a risk.”

“The relatively high prices of the iPhone X are a necessary and important mechanism to control demand in the near term,” Geoff Blaber, analyst at CCS Insight has previously said. “At $999, the iPhone X is priced to be a natural increment beyond the iPhone 8 Plus.”

“Why are there two distinct models in Apple’s iPhone portfolio? Apple has fallen victim to its own success,” Jeff Orr, research director at ABI Research previously said. “iPhone X establishes a new value level for Apple customers that want a premium, futuristic device. A new price point is also implemented to reflect the flagship nature of iPhone X.”

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