Apple’s new iPhone X isn’t selling like expected, according to industry analysts who are lowering their forecasts for first-quarter 2018 sales of the new phone. They told Bloomberg News that while the iPhone X achieved high sales following its debut last fall, it has had a disappointing holiday season and that the new year isn’t shaping out to be any better.
“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,” wrote Zhang Bin, a Sinolink Securities Analyst.
Bin predicted Monday that the phone will reach 35 million sales in the first three months of the new year. This is 10 million less than he had estimated in an earlier report.
Taiwanese newspaper Economic Daily News reported that Apple has trimmed its first-quarter sales forecasts to 30 million units, down from 50 million. And JL Warren Capital LLC forecast 25 million shipments of new iPhone X units in that time period, compared to 30 million in the fourth quarter of 2018. The firm blamed “the iPhone X’s high price point and lack of interesting innovations” in a Friday report.
The phone is currently selling for $999, according to Cowen & Co., which also found the relatively high price to be an issue. The firm said that customers seem to be opting for cheaper versions of the iPhone.
Apple is also facing more competition as Samsung reintroduced a new improved Galaxy 7 following a slew of Galaxy recalls due to battery fires. Other lower-cost alternatives by Chinese brands such as Huawei, Xiaomi, and Oppo are additionally cutting into Apple’s customer bases in China, India, and other emerging markets.