Shares of Apple Suppliers Fall Amidst iPhone X Weak Demand

Shares for several of the Asian suppliers of Apple fell a second consecutive day Tuesday, hurt as a report from the Economic Daily in Taiwan and some industry analysts that said demand for the iPhone X could be lower than expectations during the first quarter.

Apple will cut sales forecasts for iPhone X during the quarter to just 30 million units, said the newspaper in Taiwan on Monday. That current estimate by Apple for the quarter is 50 million iPhone X units would be sold.

Apple has not disclosed publicly its sales targets for it latest handset the iPhone X, which did not go on sale officially unit November.

Some analysts also have flagged lackluster demand. A Wall Street analyst had predicted shipments for the iPhone X would be just 25 million as consumers shy away from the high price and not enough interesting innovations.

One broker in China said it is expecting the price of the new model would dampen the enthusiasm of consumers for the handset, adding the slow production numbers might also hurt sales.

Others are much more bullish on the iPhone X. A Chicago based investment firm said that their research suggests that the March and the June quarters would have large amounts of make-up shipments for the iPhone X. It has forecasted shipments of between 40 million and 45 million during the 2018 first quarter, up from its estimate before of between 30 million and 35 million.

Analysts at another Wall Street firm forecast sales of 40 million for the iPhone X during Apple’s first quarter.

A spokesperson for Apple said the Cupertino, California company did not comment on the rumors in the market.

While on a trip to China earlier this month, Tim Cook the CEO of Apple said he could not be happier with the demand the iPhone X is receiving in the country.

Apple suppliers included Genius Electronic Optical, which fell 2.4% Tuesday to take its losses in two days to 11.4%. Pegatron Corp dropped as well by 3.2% for the week.

However drops in Foxconn, one of the main suppliers of Apple known formally as Hon Hai Precision Industry were milder and has lost just 1.8% over the last two days.

There were just 4.97 million posts on Weibo mentioning Apple’s iPhone X in December in comparison to more than 11 million its iPhone 6 during the same period three years ago.

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