Analysts Predict High Price of iPhone X Will Lead to 'Weakened Demand' in Q1 2018

[MacRumors]

Apple will reduce its shipment forecast for the iPhone X in the first quarter of 2018 from 50 million units down to 30 million units, according to a report this week by Economic Daily News (via Reuters). A handful of similar downgraded shipment predictions were shared by Apple analysts recently, most believing that the price of the iPhone X will lead to a decline in user demand early next year. The reports have caused shares in both Apple and some of its suppliers to fall.

JL Warren Capital predicted shipments of 25 million iPhone X units for Q1 2018, citing a "high price point and a lack of interesting innovations," while Sinolink Securities said the device's $1,000 price would "dampen consumer enthusiasm." Now that early adopters have gotten their hands on the iPhone X and the first wave of demand has been fulfilled, the high price of the device is again causing market watchers to predict "weakened demand" in early 2018 (via Bloomberg).

Analysts have lowered iPhone X shipment projections for the first quarter of next year, citing signs of lackluster demand at the end of the holiday shopping season.

"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," Zhang wrote.

Lowered shipment and demand expectations are typical around this time of year. In 2016, a Nikkei report said that Apple would reduce iPhone 7 production by 10 percent in Q1 2017 because of "sluggish" demand and accumulated inventory building up throughout the holiday season.

In terms of availability, iPhone X has been pretty easy to obtain for those looking to purchase the smartphone. Shipping times improved consistently in the lead-up to Christmas and availability at U.S. Apple Stores increased to an average of 75 percent, up from 44 percent the week before Christmas, according to Gene Munster.

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.

Article Link: Analysts Predict High Price of iPhone X Will Lead to 'Weakened Demand' in Q1 2018

 

[SteveJobs2.0]

No “s” Sherlock!

 

[NachoGrande]

I can Only speak for myself but there is nothing in that phone that is worth 1100.

 

[timborama]

I’m guessing it has more to do with lack of Touch ID and that notch. Those are my reasons for passing on the X.

 

[KPOM]

We’ll see in a few weeks when Apple makes its forecast for the next quarter. Until then it’s all just speculation.

 

[Will.O.Bie]

Anyone surprised by this? I have the X and I like it a lot, but I don't think a lot of people will find the price tag to be justified. Now, if this is the X Plus, then maybe.

 

[Strelok]

Analysts that missed the boat earlier or just sold and want another chance to buy at a lower price.

 

[DakotaGuy]

If you think the X is expensive just wait for the Plus model.

 

[KPOM]

I’m guessing it has more to do with lack of Touch ID and that notch. Those are my reasons for passing on the X.

If there is lower demand (still a big if), my guess is that it’s the price. Face ID works better than Touch ID in most cases, and the screen is much bigger than the 6/7/8.

 

[I7guy]

I wanted the c but will hold out for the “x plus”. The “x” wasn’t expensive enough./s

 

[corrado7]

Its the price for me. I update every year but I have a hard time justifying the monthly price... I would not drastically change or improve my experience with the current iPhone.

 

[itsmilo]

I can Only speak for myself but there is nothing in that phone that’s is worth 1100.

Same. What difference does it really make. At the end of the day it is running the same iOS so i would just be going back to using the exact same apps the exact same way

 

[simonmet]

“Lack of interesting innovations”

Ouch! lol

 

[MH01]

Still getting over the fact analysts said you wouldn't be able to get one into Feb..... I'm going to become an iPhone analyst , captain obvious , this gig is easy, just reposition your analysis on the current situation .

 

[macTW]

Or, you know, the fact Apple ramped up production to meet holiday demand for once.

The price is high but this narrative of too high is getting old.

 

[Will.O.Bie]

Still getting over the fact analysts said you wouldn't be able to get one into Feb..... I'm going to become an iPhone analyst , captain obvious , this gig is easy, just reposition your analysis on the current situation .

And...get paid six digits for it like weather forecasters. Captain Obvious is spot on lol.

It's gonna rain tomorrow, then it doesn't. Meteorologists say "I really thought it was gonna rain, oh well"

 

[iapplelove]

I know it’s $1000 for one, but I don’t get the high price shock.

I mean I paid $900 for my 6 plus 3 years ago, so buying an iPhone X for a g note in full wasn’t a big hurt by any stretch.

 

[djcerla]

Just like every. single year. Unsubstantiated claims based on the hottest investors fears of the moment (an high price, a boring update, commodization, etc). This way, a net positive (expected production bottlenecks quickly solved) becomes a worrisome signal of low demand, even if it’s widely known that 450.000 to 550.000 iPhone Xs are produced every day.

These guys have probably shorted the stock and try to support the move with self-fullfilling prophecies.

 

[cflem]

I predict that once again, Apple with smash their quarterly revenue... Thats all that matters.

Get a grip.




Apple will reduce its shipment forecast for the iPhone X in the first quarter of 2018 from 50 million units down to 30 million units, according to a report this week by Economic Daily News (via Reuters). A handful of similar downgraded shipment predictions were shared by Apple analysts recently, most believing that the price of the iPhone X will lead to a decline in user demand early next year. The reports have caused shares in both Apple and some of its suppliers to fall.

JL Warren Capital predicted shipments of 25 million iPhone X units for Q1 2018, citing a "high price point and a lack of interesting innovations," while Sinolink Securities said the device's $1,000 price would "dampen consumer enthusiasm." Now that early adopters have gotten their hands on the iPhone X and the first wave of demand has been fulfilled, the high price of the device is again causing market watchers to predict "weakened demand" in early 2018 (via Bloomberg).

Lowered shipment and demand expectations are typical around this time of year. In 2016, a Nikkei report said that Apple would reduce iPhone 7 production by 10 percent in Q1 2017 because of "sluggish" demand and accumulated inventory building up throughout the holiday season.

In terms of availability, iPhone X has been pretty easy to obtain for those looking to purchase the smartphone. Shipping times improved consistently in the lead-up to Christmas and availability at U.S. Apple Stores increased to an average of 75 percent, up from 44 percent the week before Christmas, according to Gene Munster.

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.

Article Link: Analysts Predict High Price of iPhone X Will Lead to 'Weakened Demand' in Q1 2018[/QUOTE]

 

[JediZenMaster]

So color me confused but the Note is still in the 950 and 960 price range which with the 10 percent sales tax where I live pushes it to over 1000.00.

Yet the iPhone X which has all types of new camera sensors etc is priced too high? The only new change for the Note were the dual cameras which the iPhone 7 Plus already had.

I just see a bit of bias that’s all.
[doublepost=1514308191][/doublepost]

I’m guessing it has more to do with lack of Touch ID and that notch. Those are my reasons for passing on the X.

You will be passing on many of the future iterations. With Apple there is no bringing back old features.

Touch ID is dead.

 

[EdT]

Or, you know, the fact Apple ramped up production to meet holiday demand for once.

The price is high but this narrative of too high is getting old.

Although my wife got a X I didn’t upgrade because of the cost of the 8’s or the X. The 8+ was nearly $1000 with max memory so there isn’t a real reason to choose that model over the X.

And for me the price for any of this years models is way too high.

 

[CmdrLaForge]

For me way to expensive. But everyone has a different budget, opinion and so on. I think they sell less but make the same profit in the end

 

[IbisDoc]

I can Only speak for myself but there is nothing in that phone that’s is worth 1100.

I’m guessing it has more to do with lack of Touch ID and that notch. Those are my reasons for passing on the X.

Apple is busy preparing a software “update” for your iPhones that will make you reconsider.

 

[44267547]

For me way to expensive. But everyone has a different budget, opinion and so on. I think they sell less but make the same profit in the end

You're right, it is expensive. And I think that's why Apple offered the iPhone 8 under the iPhone X. They realize iPhone X is not for everyone given the price point and as good as the iPhone X is, the iPhone 8 is still a secondary option for consumers that want a similar form factor and touch ID.

 

[MyMacintosh]

It’s hard to justify dropping $1k+ for this when you’ll just be using the same iOS you were using before as others have stated. There’s no incentive.