The year 2017 doesn’t seem to be ending well for Apple. After five class action lawsuits against the company for slowing down older iPhones, analysts have now predicted a lukewarm new year for the company’s flagship smartphone.
According to a report by Economic Daily News, analysts have lowered shipment forecast for the iPhone X in the first quarter of 2018 from 50 million units down to 30 million units. “After the first wave of demand has been fulfilled, the market now worries that the high price of the iPhone X may weaken demand in the first quarter,” Sinolink Securities Co. analyst Zhang Bin wrote.
Bloomberg further reports JL Warren Capital LLC saying that shipments will drop to 25 million units in the first quarter of 2018 from 30 million units in the fourth quarter, citing reduced orders at some Apple suppliers. The drop reflects “weak demand because of the iPhone X’s high price point and a lack of interesting innovations,” the New York-based research firm said.
“Bad news here is that highly publicized and promoted X did not boost the global demand for iPhone X,” according to the note.
On the contrary, although downgraded shipping estimates have begun to proliferate, other analysts are looking at higher shipment forecasts for the iPhone X. Loop Capital increased iPhone X shipment numbers to between 40 and 45 million units in Q1 2018, while analysts at Jefferies forecast about 40 million iPhone X sales for the quarter.
As for meeting current supply and demand needs, Apple’s efforts to increase iPhone X production in recent months have made supply and demand fairly balanced at the moment, said Jia Mo, an analyst at Canalys in Shanghai. “The market will still hold high expectations for Apple’s 2018 products if Apple introduces more devices with iPhone X’s key features to cover a wider price range,” he said.
Customers seem to be opting for cheaper models of the iPhone, according to Cowen & Co., which says that suggests Apple failed to cram enough new technology into the iPhone X to justify the hefty price tag.