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Tuesday, November 24, 2020
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Apple Trims Q1 Sales Forecast Amid iPhone X Lackluster Demand

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iPhone X in a showroom

The demand for the new iPhone X was reportedly weaker than expected this holiday season.

(Mirror Daily, United States) – Apple had to adjust its first-quarter prediction for iPhone X sales amid weak demand during this holiday season.

 

Analysts confirmed that their predictions were beaten as well because of lackluster demand for the latest iPhone model.

 

According to some analysts, shipments this shopping season are 10 million less than estimated. The total iPhone X shipments are expected at 35 million during this period. The weak demand is mainly due to the high price of the latest model ($999) which could bite deep into Q1 sales as well.

 

JL Warren Capital LLC predicts Q1 sales to fall to 25 million handsets. Apple suppliers confirmed that orders have been significantly reduced. The New York-based firm believes that the two reasons the iPhone X is so unpopular are its price and lack of innovation.

 

“Bad news here is that highly publicized and promoted X did not boost the global demand for iPhone X,” JL Warren Capital LLC recently told its clients.

 

iPhone X Sales Not As Strong As Estimated

 

Apple has placed a heavy bet on the iPhone X, which marks the tenth anniversary of the flagship phone. However, competitors like Samsung and Huawei are catching up on Apple especially in emerging markets like India and China.

 

Taiwan which hosts one of Apple’s major iPhone suppliers confirmed that the Q1 sales forecast had to be reduced from 50 million units to 30 million. The newspaper that broke the news cited unnamed sources familiar with the supply chain issues.

 

What’s more, one primary manufacturing plant for the iPhone in the Zhengzhou province, in China, no longer accepts new workers. Other Apple suppliers in China including Largan Precision Co., Shenzhen Desay Battery Technology, and Lens Technology Co. saw the price of their stock fall on Monday.

 

Lens’ shares bounced back the next day, but Largan’s continued to fall.

Image Source: Wikimedia

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John Birks

John holds a diploma in journalism from the S.I. Newhouse School of Public Communications at Syracuse University. He covers the technology, social media, green business, eco-travel, politics, arts culture.

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