Report: iPhone 8 Sales Lower Than Expected; Apple Vendors Reduce Component Production As Sales Slowdown

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With the holiday season over and peak demand for iPhones now over, Apple suppliers have reduced the component production for the iPhone X, iPhone 8, and iPhone 8 Plus. The lower orders are in line with previous years where Apple suppliers reduce their total production due to lower demand.

The reduction in component order is expected to be around 15-30 percent. However, some sources point that the demand for the iPhone 8 and iPhone 8 Plus have been lower than expected which is also dragging down the momentum for the iPhone X. The overall holiday sales of the iPhone 8 and iPhone 8 Plus have also been lower than anticipated.

Component orders for iPhone devices will come 15-30% less than expected for the first quarter due mostly to seasonal factors, but some sources argued that the slower-than-expected sales of iPhone 8 and iPhone 8 Plus have dragged down the momentum for the iPhone X.

Apple will be revealing its Q4 2017 results on February 1st. The company is expected to post a record-breaking quarter, with analysts expecting the company to ship almost 80 million iPhones during this period.

Our Take

The strong demand for the iPhone X and lower than expected sales for the iPhone 8 and iPhone 8 Plus make sense. A potential iPhone 8 buyer would end have likely stretched his budget to go for the iPhone X which packs in a better camera, Face ID, and a vastly superior design. If anything, the blame for the lower than expected sales for the iPhone 8 goes to the iPhone X. In the end though, Apple would be laughing all the way to the bank as the higher sales of the iPhone X would have ultimately benefited its overall revenue and profit margins.

[Via DigiTimes]

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