Skip to main content

Apple suppliers drop on report of weak iPhone X demand; analysts' views mixed

An attendee uses a new iPhone X during a presentation for the media in Beijing, China October 31, 2017. PHOTO: REUTERS

An attendee uses a new iPhone X during a presentation for the media in Beijing, China October 31, 2017. PHOTO: REUTERS
Shares in several of Apple Asian suppliers fell for a second straight day on Tuesday, hurt by a report from Taiwan’s Economic Daily and some analysts saying that iPhone X demand could come in below expectations in the first quarter.
Apple will slash its sales forecast for the iPhone X in the quarter to 30 million units, the Taiwanese newspaper said on Monday, citing unidentified sources – down from what it said was an initial plan of 50 million units.
Apple has not publicly disclosed quarterly sales targets for the iPhone X, which went on sale in November.
Some analysts have also flagged disappointing demand. US-based JL Warren Capital is predicting shipments of just 25 million units as consumers balk at the “high price point and a lack of interesting innovations”.


Chinese broker Sinolink Securities said it expects the model’s price would dampen consumer enthusiasm for the product, adding that slow production rates could also hinder sales.
But others were more bullish.
“Our work continues to suggest the March and June quarters will have a significant amount of iPhone X make-up shipments,” Chicago-based Loop Capital said in a note last week, forecasting shipments of 40-45 million units in the first quarter of 2018, up from an estimated 30-35 million units in the current quarter.
Analysts at Jefferies have also forecast around 40 million iPhone X sales for the first quarter.
An Apple spokeswoman said the company does not comment on market rumors. During a trip to China this month Apple CEO Tim Cook said he “couldn’t be happier” with the demand for the iPhone X in the country.
Apple suppliers that were most hit included Genius Electronic Optical which dropped 2.4 percent on Tuesday to take its losses this week to 11.4 per cent. Pegatron also fell on both days, losing 3.2 per cent this week.
But falls for Foxconn, one of Apple’s main suppliers formally known as Hon Hai Precision were milder and it has lost only 1.8 percent over the two days.
A Reuters analysis of Chinese social media shows that interest in the iPhone X – which spiked around its launch – has not kept pace with the highly popular iPhone 6 released in 2014, which helped then drive massive sales for Apple in China.
There were only 4.97 million Weibo posts mentioning the iPhone X so far in December compared to over 11 million for the iPhone 6 in the equivalent period in 2014, the analysis showed.

Apple’s stock has risen over 50 percent in 2017 and is currently valued at just under $900 billion.

Comments

Post a Comment

Popular posts from this blog

This startup is pairing the blockchain with farming

Ripe, a blockchain startup, is  showcasing  how the distributed ledger technology can be applied to farming and provide companies with important data on crops and throughout the supply chain. By combining a blockchain with purpose-built scanners and specialized sensors, the company is able to provide critical data that is easily communicated to partners, demonstrating why  blockchain is growing more popular  as a tool to be leveraged as part of an IoT solution. Blockchain is a key tool for the IoT because of how it combines data storage and communication in a trusted medium. A blockchain is a shared, distributed database  that acts as an immutable ledger, recording entries and verifying them across a number of independent participants. Once an entry is made, it’s marked with a unique hash code that places it sequentially in the ledger. In agriculture, this means that farmers can use sensors and handheld devices to gather data about crops like tomatoes...
Post a Comment
Read more

Honda Launches the CR-V SUV in Pakistan

The 2018 Honda CR-V has been launched in Pakistan and it looks charming. Honda has finally launched the 2018 Honda CR-V in Pakistan. This Sports Utility Vehicle (SUV) has proven to be pretty popular around the world with an average of 300,000 units sold annually. In Pakistan, the Honda CR-V is gaining the popularity and attention of local auto enthusiasts. Honda CR-V 2018 was recognized as ‘2018 Motor Trend SUV of the year’ recently as well. The international model of CR-V has these four variants: Honda CR-V LX (Standard), Honda CR-V EX, Honda CR-V EX-L, Honda CR-V Touring. The CR-V offers pretty great features when you look at it. Let's take a look at what Honda Compact Recreational Vehicle (CR-V) has to offer. Exterior Because of its shiny new sporty-looking exterior, the vehicle is placed in small sports utility vehicle’s category. The exterior, no doubt, makes you want to look twice as some modifications to the previous model have been made. ...
Post a Comment
Read more

Samsung Launches Mid-Range Galaxy Wide 3

HANDSETS Check out Samsung’s new low-mid segment smartphone, the Galaxy Wide 3 with 3300 mAh battery and a 5.5-inch display. Samsung unveiled Galaxy Wide 3 for the South Korean market featuring low-mid specifications, and a design much similar to the well-known Galaxy J series. It does not follow the sweet bezel-less display trend, albeit comes with decent specifications for all those Samsung fans out there. Design & Display As you’d expect, the design is fairly simple with large bezels that house Samsung’s signature hardware button configuration, with the company’s latest icons for the back and menu button. The volume rocker looks modern and is housed on the left edge of the phone. The display is a 5.5-inch HD (720 x 1280) unit, an IPS LCD, with no edge-to-edge aesthetic. Huawei Unveils 8e Youth With a Tall Display & Android Oreo For Cheap Hardware & Storage The Galaxy Wide 3 is powered by Samsung’s Exynos 7870, octa-core, clocked at 1.6 G...
Post a Comment
Read more