The iPhone X seems to have hit a rough patch of sorts already, just months after its high profile launch during fall. Reasons cited for the less than expected demand for the anniversary iPhone version is its high price tag coupled with fewer innovations to go with the device.
Shipment figures for the device is likely to be pruned to 35 million units for Q1, 2018, which is 10 million units less than what was estimated initially, said Sinolink Securities Co. analyst Zhang Bin in a report published recently. This also runs contrary to the initial expectations wherein demand for the anniversary iPhone version was expected to shoot through the roof.
In fact, there seemed quite a few production constraints that had been holding back shipments worldwide during the early phase post the launch of the device. Many had then predicted there being a huge supply-demand gap during the onset of the holiday shopping season. With that almost being over, demand for the iPhone X seems to have cooled off of late, forcing analysts to revise its shipping estimates for the first quarter next year.
JL Warren Capital LLC is even more critical when it predicted shipments to drop down to 25 million units in Q1, 2018. The same during the holiday quarter stood at 30 million units. The Taiwanese newspaper Economic Daily News meanwhile is claiming Apple to have slashed its first quarter shipments to 30 million units, down from 50 million estimated earlier. The newspaper cited inputs from supply chain officials to base its claim on but refused to identify those.
Shipment traditionally is lower in the quarter immediately preceding the holiday quarter though for the iPhone X, the high price could be complicating things further together with the lack of enough innovative features to justify the same.
The things going for the iPhone X is its all-front display save for a minor notch at the top. Also, while the notch houses some of the most unique features of the iPhone X such as Face ID and its AR capabilities, the same can be an irritant when watching videos full-screen.
The AR based features such as animoji makes the phone stand heads and shoulder above the competition but the lack of apps to make the most of it is hurting the phone’s prospects for now. That said, things could likely improve for the better once new AR-rich apps comes onto the scene. Case in point; the new Pokemon Go app which makes use of Apple’s ARKit framework.
Shares of companies engaged in manufacturing the parts that goes in the making of the iPhone X too have taken a hit following a slump in demand. Fresh recruitment too have come to a standstill as component manufacturers struggle to cope with reduced demand.