Analysts are hitting Apple and its suppliers hard this week, alleging that shipment forecasts for the high-end iPhone X smartphone have been slashed for Q1 2018. The reduced shipping forecast comes on the heels of lackluster demand for the high-end smartphone at the end of the holiday shopping season. Analyst Zhang Bin from Sinolink Securities Co. issued a report on Monday that claims shipments might be as low as 35 million units for the quarter.
That would make sales 10 million units under the prediction for the quarter. Zhang wrote, "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 isn’t alone in predictions of slower iPhone X sales; JL Warren Capital LLC also says that overall iPhone shipments will decline to 25 million units compared to the 30 million units that were sold in Q4 2014. That company also claims that some Apple suppliers have already seen reduced orders for the iPhone X.
The decline in orders is blamed on "weak demand because of the iPhone X’s high price point and a lack of interesting innovations." The company also wrote in its note to investors, "Bad news here is that highly publicized and promoted X did not boost the global demand for iPhone X."
This isn't the time for a very expensive iPhone X to not be popular with consumers. Samsung has recovered from the damage done to its reputation with the Note 7 recall and is doing well with its newest Galaxy devices. Other smartphone suppliers have been pushing hard in the U.S. market as well with Huawei, Oppo, and Xiaomi all aiming for the same customers in the U.S. that Apple wanted to lure with the iPhone X.
Reports indicate that Apple has reduced its Q1 2018 sales forecast to 30 million units from 50 million. That report comes from an unnamed official in the Apple supply chain. Rumors also suggest that Apple will have a 6.1-inch mainstream iPhone next year that will return to an aluminum body.