Apple Manufacturer Shares Drop After News Of Weak iPhone X Demand
A number of Apple Inc’s key Asian suppliers faced stock drops on Tuesday after a report by Taiwan’s Economic Daily that public demand for the iPhone X could fall below expectations in quarter one of the new year.
Foxconn, one of Apple’s main third-party manufacturers for parts, saw its shares drop 1.8 percent, whereas another supplier, Genius Electronic Optical Co Ltd, lost 11.4 percent.
Apple is planning on cutting its sales forecast for the iphone X to 30 million units — down from the initially expected 50 million.
Other independent analysts are seeing problems in Apple’s future as well. JL Warren Capital, a US-based financial advisory company, is predicting just 25 million shipments of Apple’s new device, citing consumer concern about the “high price point and a lack of interesting innovations.”
Not all investors were bullish on Apple. Loop Capital, a Chicago-based firm, predicts 40-45 million shipments of the iPhone X.
“Our work continues to suggest the March and June quarters will have a significant amount of iPhone X make-up shipments,” a report from the firm said.
The stock slides also come after Apple admitted it throttles the speed of older iPhones. Consumers had long expected that the company had modified devices after purchase, and in a statement last week the company admitted it “released a feature for iPhone 6s and iPhone SE to smooth out” issues when the battery was unable to power the phone, resulting in lower processing power.
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