Why Analysts Are Saying Apple’s iPhone X Is Suffering From ‘Flagging’ Demand
Analysts are concerned about the iPhone X.
In a note to investors on Sunday, Longbow Research analyst Shawn Harrison and Gausia Chowdhury cited sources in Apple’s supply chain that said the “iPhone X didn’t sell well during the holiday season.” The source, who wasn’t identified, added that they had expected to get more iPhone X orders from Apple, but didn’t due to lower-than-expected demand for the company’s flagship smartphone, according to Business Insider, which obtained a copy of the note.
That was followed on Monday from Nomura analysts Anne Lee and Jeffery Kvaal, who wrote to investors on Monday that the iPhone X “is flagging,” according to the report. Kvaal added that customers don’t appear to like the iPhone X’s high price and have opted for other devices rather than the $999 handset.
Apple released the iPhone X last year with a variety of new components, including an organic light-emitting diode (OLED) screen and a face scanner the company calls Face ID. The iPhone X has a revamped design that eliminates the physical home sensor and comes with wireless charging. At the time, Apple called the iPhone X the future of smartphones.
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Since its release in November, however, the iPhone X has been the subject of countless reports that demand isn’t as strong as Apple had hoped. Those reports, which have come from analysts and industry watchers, have suggested that the iPhone X’s price has proven a barrier among consumers. Reports earlier this year went so far as to say that Apple would stop producing the iPhone X this summer, months ahead of when it was scheduled to do so.
For its part, Apple hasn’t commented on individual iPhone model sales. Instead, the company has kept a brave face and pointed to the iPhone division’s strong sales and profits as proof that demand for its handsets is strong.
Apple did not immediately respond to a Fortune request for comment on the analysts’ claims.