Apple’s shares fell more than 2.5 percent as brokers and traders speculated over poor demand and cuts in production of iPhone 8, ahead of the November launch of the 10th anniversary iPhone X.
The iPhone X, eagerly awaited by fans, will go on sale from Nov. 3 and 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 is likely to focus more on iPhone X, which looks radically different with an edge-to-edge display, and will retail from $999, boosting the company’s margins.
Rosenblatt Securities analyst Jun Zhang said he believed Apple could cut iPhone 8 production and shift capacity toward iPhone X as the premium phone is expected to sell out quickly.
“Our research suggests the production mix was 50/50 between iPhone 8/8 Plus and the iPhone X, but iPhone X allocation could shift up to 60-70 percent in December and even more in the March quarter,” Zhang wrote in a note.
I don’t know why anyone would get the iPhone 8 when the iPhone X was going to launch right after it. I’ll stick with my iPhone 6s until the the home button falls off.