Before the iPhone X launched, analysts expected the handset to sell like hot cakes and lead to a super cycle where Apple would sell a record number of iPhones. However, due to production woes, analysts expected a demand-supply imbalance that would see Apple sell a lower number of iPhone X units than originally anticipated.
This would have led to the iPhone X demand sustaining in Q1 2018 where iPhone sales have usually seen a sharp decline. However, with the supply of the iPhone X no longer being a concern, things have taken a turn for the opposite.
Analysts now believe that the demand for the iPhone X is on the lower side which is going to affect the total number of units Apple ends up shipping in Q1 2018. Analysts have now reduced their shipment prediction for the period to around 25 million units. This is due to the $999 price tag of the iPhone X and the lack of “interesting innovations.”
While the iPhone X sold out within minutes of going on pre-order and was tough to buy during the initial weeks of its release, things have changed drastically since then. In the United States and the United Kingdom, the iPhone X is now available for next-day delivery, with plenty of stock of the handset being available across the world. While this can be attributed to an increase in production, some credit also goes for the lower than anticipated demand for the iPhone X across the globe. A previous report had also claimed that demand for the iPhone X has been lower than anticipated in developed countries like the United States.
The decline in iPhone X shipments has also led Apple to reduce its orders to its supply chain partners. Hon Hai a.k.a Foxconn which is assembling the iPhone X for Apple has also stopped recruiting workers.
Last week, a report claimed that Apple could end up adjusting the price of its iPhone lineup in early 2018. This could mean that Apple could reduce the iPhone X to boost its sales. However, Apple has never done anything like this in the past so the chances of the iPhone X getting an official price cut are pretty slim. Retailers and carriers, however, can always push the sales of the device by offering attractive deals on it.
[Via Bloomberg]Like this post? Share it!