Apple (Nasdaq: AAPL) investors were hoping the unveiling of the new iPhone 8 and iPhone X models would propel the stock to new all-time highs. Instead, a string of negative headlines this week have Apple stock trading more than 5 percent lower than it was on the day of Apple’s big iPhone event earlier this month.
The week got off to a bumpy start for Apple when Rosenblatt Securities analyst Jun Zhang wrote that iPhone 8 orders have been disappointing in China. Rosenblatt’s research indicates there were 1.5 million iPhone 8 orders on Chinese e-commerce website JD.com during the first three days it took them. There were roughly 3.5 million orders for the iPhone 7 in the first three days it was available.
Zhang says sluggish iPhone 8 demand could be a sign buyers are waiting for the higher-priced iPhone X model, which is not scheduled to go on sale until Oct. 27. However, he said Apple’s iPhone X production “might not be able to meet demand in [the] December and March quarters.”
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To make matters worse, Arthur Wood Equity Research analyst Jeff Johnston says a number of experts and users have given the iPhone 8 “lukewarm” review, according to Barrons. He says weak demand isn’t limited to China and estimates North American demand is also down more than 50 percent from a year ago.
The string of negative headlines continued on Thursday when Raymond James analyst Chris Caso wrote that meetings with Asian iPhone suppliers suggest iPhone X production may be delayed more than anticipated.
“While our checks are ongoing, initial feedback from our meetings suggests that final production of iPhone X has not yet begun, with production expected to commence in mid-October,” Caso says. “That production start is about a month later when compared to expectations a month ago and about two months later than expectations at the end of June.”
Despite the market’s concerns about the iPhone 8 and iPhone X, B. Riley analyst Craig Ellis says product launch data points can be extremely volatile, and it’s “early to draw broad-based product cycle conclusions.”
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Johnson says Arthur Wood remains “bullish” on Apple stock. Rosenblatt maintains a “neutral” rating for Apple.
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It’s Too Early for Apple Investors to Panic Over iPhone Sales originally appeared on usnews.com
