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AAPL Drops Amid Reports of Weak iPhone X Demand

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Following a recent report by Taiwan’s Economic Daily as well as some analyst predictions that Apple’s flagship iPhone X demand could come in below expectations in the first quarter, Apple and a number of its Asian suppliers saw a sharp drop in their stock prices this morning, Reuters is reporting. On track for its worst day since Aug. 10, AAPL dropped nearly 3% today with its market capitalization falling $23 billion.

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Citing unidentified sources, the Taiwanese newspaper claimed that Apple will slash its sales forecast for the iPhone X in the quarter to 30 million units, down from its initial plan of 50 million units. Meanwhile, analysts are also adjusting their forecasts on iPhone X shipments at the start of 2018 based on demand largely being fulfilled during the holiday quarter.

Some analysts have also flagged disappointing demand. U.S.-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”.

Apple suppliers that were most hit included Genius Electronic Optical Co Ltd which dropped 2.4 percent on Tuesday to take its losses this week to 11.4 percent. Pegatron also fell on both days, losing 3.2 percent this week. But falls for Foxconn, one of Apple’s main suppliers formally known as Hon Hai Precision Industry, were milder and it has lost only 1.8 percent over the two days.

On the other hand, analysts at Jefferies and the Chicago-based Loop Capital remain bullish, forecasting 40 million and 45 million iPhone X shipments for the first quarter respectively. 

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  • Kirk

    Hmmm demand in 2018 based on stock being fulfilled during the holiday quarter. Well personally I think it’s a yes/no. Many people I know are not buying the iPhone X because they are plus users and are going to wait for a plus version.

  • KBlazer07

    So much for demand “off the charts”. I somewhat took a loss selling (although the replacement stock has made almost as much. I’ve lost trust in Apple over the last couple years, more to do that anyone who reports negatively gets slammed by them and that person/company retracts what they said. Time will tell how far it drops though.

  • Tim

    Maybe the market for a $1000usd + tax phone isn’t actually as large as they thought?! The fact is, smartphones have matured a lot and annual updates are more on the mildly incremental side rather than the revolutionary changes we had got used to previously.

  • Léon

    AAPL stock price rose 70% in the last two years. It is virtually impossible to have taken a loss selling at any point in that time span unless the shares were bought and then sold immediately after a couple of months. There were only the short term fluctuations that could account for the possible loss. Anyone who bought them at any point in the last two years and held them for more than 4 months couldn’t have sold them at a loss. That is evident from the AAPL stock price chart. Buying shares and selling them quickly is either indication of a speculator or inexperience. Serious investors are in for the long haul. Two basic advices that everyone encounters at the beginning is diversify and invest for the long term: pick the shares of the company you like, have trust in and let them be. Don’t sell quickly either out of greed when they start climbing, or out of fear when they decline.

  • Riley Freeman

    i have one and that price point is not attractive. This cannot be the new norm, next year the price better go back down

  • KBlazer07

    Sorry, not an overall loss, I made a ton as I’ve had them for years. It’s just sitting about $10 higher right now from when I sold them (soon after iPhone X release), and well below its peak. My statements back then were that I didn’t believe the iPhone X sales were “off the charts” as Apple’s statements were contradictory and that they wouldn’t make sales forecasts (which they haven’t done for a year now since people have been holding off to buy the X). I sold because I believe these “lies” or misinformation will catch up with them very soon. I’ve seen high tech stocks plummet and it isn’t a pretty sight (not that Apple will plummet).

  • Léon

    Now I get what you meant. I’m glad you made a profit selling them and you are right in being apprehensive about the future of the Apple stock value. There are many factors that influence it and wouldn’t be great if only rational and measurable factors would be the ones determining the stock value? Unfortunately, most of the time the irrational and quite unpredictable factors are so prevalent that it boggles the mind. What big investors and ‘analysts’ feel about the company’s performance or its future often and more than it should determines which way the stock is going to go. There’s no defence from that. You can either sell if you are not confident in the company anymore or if you decide to stick with it, hope that you made a decent profit up to that point so it acts as a buffer that gives you enough time to sell in case the stock starts to decline rapidly. With Apple, there is an additional cushion of their gigantic cash hoard that acts as a protection from the catastrophic and rapid stock plunge. Nobody knows what future holds and at one point Apple’s stock price may become next to worthless (I hope not, ever) but it probably wouldn’t happen overnight. They would fight it with their unprecedented cash reserve thereby substantially slowing the decline, providing opportunity to at least recover one’s initial investment if not a slight profit.

  • John

    Hence the slowing down of older iPhones debacle, to try increase sales LOL.

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