The iPhone X might not be selling anywhere near the level Apple had anticipated. Multiple analysts have recently cut their sales forecast based on lower than expected demand, and now there is a report in Japan claiming Apple is telling suppliers that it slashing its iPhone X orders in half to 20 million units, for the first quarter of 2018.
There is no mention of the where that information is coming from, only that Apple had original intended to sell more than 40 million iPhone X devices in the first quarter. However, sales during the holiday shopping season to end 2017 were apparently low in key markets, such as Europe, China, and the United States. As the story goes, consumers are having a tough time wrapping their heads around the $999 starting price.
This is not the first time that price has come up as a factor for poor sales, at least compared to the number of units Apple anticipated selling. At the end of December, analyst Zhang Bin from Sinolink Securities Co. issued a report claiming iPhone X shipments for the holiday quarter might 35 million units, or 10 million below Apple's target.
"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.
At the time, JL Warren Capital LLC had the numbers a little lower at 30 million, and said that iPhone X shipments in the first quarter of 2018 would be even lower.
Just last week, KGI Securities analyst Ming-Chi Kuo issued a more dour outlook, saying Apple will likely discontinue the first generation iPhone X when a second generation version gets introduced in the fall, rather than reduce the price, as Apple often does when launching a new phone.
The iPhone X is a celebratory phone for Apple, commemorating the iPhone's 10-year anniversary. It launched alongside the iPhone 8 and iPhone 8 Plus, separating itself with an organic light emitting diode (OLED) display and an IR camera with facial recognition capabilties.