Analysts Predict High Price of iPhone X Will Lead to 'Weakened Demand' in Q1 2018

Apple will reduce its shipment forecast for the iPhone X in the first quarter of 2018 from 50 million units down to 30 million units, according to a report this week by Economic Daily News (via Reuters). A handful of similar downgraded shipment predictions were shared by Apple analysts recently, most believing that the price of the iPhone X will lead to a decline in user demand early next year. The reports have caused shares in both Apple and some of its suppliers to fall.

JL Warren Capital predicted shipments of 25 million iPhone X units for Q1 2018, citing a "high price point and a lack of interesting innovations," while Sinolink Securities said the device's $1,000 price would "dampen consumer enthusiasm." Now that early adopters have gotten their hands on the iPhone X and the first wave of demand has been fulfilled, the high price of the device is again causing market watchers to predict "weakened demand" in early 2018 (via Bloomberg).

Analysts have lowered iPhone X shipment projections for the first quarter of next year, citing signs of lackluster demand at the end of the holiday shopping season.

"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.

Lowered shipment and demand expectations are typical around this time of year. In 2016, a Nikkei report said that Apple would reduce iPhone 7 production by 10 percent in Q1 2017 because of "sluggish" demand and accumulated inventory building up throughout the holiday season.

In terms of availability, iPhone X has been pretty easy to obtain for those looking to purchase the smartphone. Shipping times improved consistently in the lead-up to Christmas and availability at U.S. Apple Stores increased to an average of 75 percent, up from 44 percent the week before Christmas, according to Gene Munster.

Although downgraded shipping estimates have begun to proliferate, other analysts are looking at higher shipment forecasts for the iPhone X. Loop Capital increased iPhone X shipment numbers to between 40 and 45 million units in Q1 2018, while analysts at Jefferies forecast about 40 million iPhone X sales for the quarter.

Related Roundup: iPhone X

Top Rated Comments

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NachoGrande

15 months ago

I can Only speak for myself but there is nothing in that phone that is worth 1100.

Rating: 62 Votes

itsmilo

15 months ago

I can Only speak for myself but there is nothing in that phone that’s is worth 1100.

Same. What difference does it really make. At the end of the day it is running the same iOS so i would just be going back to using the exact same apps the exact same way

Rating: 23 Votes

IbisDoc

15 months ago

I can Only speak for myself but there is nothing in that phone that’s is worth 1100.

I’m guessing it has more to do with lack of Touch ID and that notch. Those are my reasons for passing on the X.

Apple is busy preparing a software “update” for your iPhones that will make you reconsider.

Rating: 20 Votes

SteveJobs2.0

15 months ago

No “s” Sherlock!

Rating: 14 Votes

Will.O.Bie

15 months ago

Anyone surprised by this? I have the X and I like it a lot, but I don't think a lot of people will find the price tag to be justified. Now, if this is the X Plus, then maybe.

Rating: 14 Votes

timborama

15 months ago

I’m guessing it has more to do with lack of Touch ID and that notch. Those are my reasons for passing on the X.

Rating: 14 Votes

JediZenMaster

15 months ago

So color me confused but the Note is still in the 950 and 960 price range which with the 10 percent sales tax where I live pushes it to over 1000.00.

Yet the iPhone X which has all types of new camera sensors etc is priced too high? The only new change for the Note were the dual cameras which the iPhone 7 Plus already had.

I just see a bit of bias that’s all.
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I’m guessing it has more to do with lack of Touch ID and that notch. Those are my reasons for passing on the X.

You will be passing on many of the future iterations. With Apple there is no bringing back old features.

Touch ID is dead.

Rating: 12 Votes

DakotaGuy

15 months ago

If you think the X is expensive just wait for the Plus model. :)

Rating: 12 Votes

MyMacintosh

15 months ago

It’s hard to justify dropping $1k+ for this when you’ll just be using the same iOS you were using before as others have stated. There’s no incentive.

Rating: 10 Votes

Powermax

15 months ago

I can only speak for myself, I was planning on buying the new iPhone but the high price made me keep my 6S for another year. At the same time I realised that it is waste of money to buy a new phone every two years so I plan to keep my future phones for at least three years from now on. So there you go Apple, thats what you get with your high prices. But I am sure there are still enough people out there who will buy it even at these prices.

Rating: 9 Votes

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