Apple shares last week dropped more than 2% on the back of low sales of iPhone 8. Now, a supply-chain resource in Taiwan has allegedly stated that Apple has slash the manufacture of both iPhone 8 Plus and iPhone 8 handsets. To additionally compound the issue for the Cupertino major, there are reports of the company grappling with production of iPhone X. As per a research firm, just 2–3 Million units of iPhone X might be obtainable during the roll out. The number seems quite less bearing in mind the high requirement that many experts are anticipating for the tenth-anniversary iteration of the company. Most carriers are certain that iPhone upgrade costs will enhance once iPhone X goes on trade.
Some experts even say that Apple might have undervalued the requirement for iPhone X. In spite of its high cost they witness a huge requirement for the handset. Coming to sales of iPhone 8 Plus and iPhone 8, this is the initial time ever in history of iPhone that manufacture of some models of iPhone has been lowered in the cycle so early claims a report in Economic Daily News of Taiwan. Lately, broker KeyBanc Capital Markets as well had said that iPhone models of last year—iPhone 7 Plus and iPhone 7—are trading better than the present-generation iPhone 8 Plus and iPhone 8 handsets. The report from brokerage mentions carrier store studies carried out in the U.K. and the U.S.
John Vinh, analyst at KeyBanc, claimed in a client note, “Many users indicated that a significant portion of users are purchasing iPhone 7 instead of the latest iPhone 8, given the shortage of noteworthy improvements in the new handset.” He claimed, “While iPhone 8 in the U.S. begins from $699, iPhone 7 is trading from $549 post a cost cut.” Vinh additionally claimed that feedback from shops claim that most users seem to be hanging around of for iPhone X and some also need to compare the new upcoming model of iPhone with other models prior to buying.
He also viewed shortage of promotions also being one of the factors for the deprived sales of iPhone 8 Plus and iPhone 8.