Apple Inc. (AAPL) Lifted to "Overweight" at KeyCorp

Posted October 20, 2017

Daniel Ives, chief strategy officer at GBH, predicts only 20 to 25 percent of iPhones sold over the next 12 to 18 months will be an iPhone 8 or iPhone 8 Plus, according to Reuters.

Shares of Apple were down more than 2 percent midmorning Thursday, at around $155 a share. Again, these rumors weren't backed up by any hard statistical evidence from Apple - but they all serve as fuel to the fire for those who are damning the iPhone 8's release as a failure.

Apple has cut orders linked to iPhone 8 models by more than 50% over the rest of the year, the Taipei-based Economic Daily News reported, citing unidentified supply-chain sources.

Apple shares fells 2.8 percent in early Thursday trading after reports out of Taiwan that the tech giant has slashed orders for the iPhone 8 and 8 Plus by almost 50 percent for the rest of the year.

Apple may have reduced the production of their iPhone 8 and 8 Plus for November and December because of the launch of the new iPhone X. This is Apple's 10th anniversary iPhone and it comes with the company's biggest updates to date. Launch demand for the iPhone 8 may not have been weak, but also saw much shorter lineups at some stores.

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Even though the sales of the iPhone 8 were doing well for a while, the sales started to drop during the release on the 22nd of September.

While the iPhone 8's struggles aren't great for Apple (or for its stockholders, at the moment), there's still a few reasons to hold off on calling for the device to go to an early grave.

Beijing/Taipei - Suppliers to Apple fell after a newspaper report that orders for iPhone 8 models had been cut for the rest of the year amid a lukewarm reception. The lower-than-expected number of people buying the iPhone seems to suggest that not many people wanted the new iPhone. The 5.8-inch OLED display dwarfs the 4.7-inch screen on the iPhone 8 and thank's to it's near bezel-less design, the iPhone X makes the 5.7-inch on the iPhone 8 Plus look cramped.

"The relatively high prices of the iPhone X are a necessary and important mechanism to control demand in the near term", Geoff Blaber, analyst at CCS Insight has previously said.

Apple has released two tiers of iPhones at once before.