The Strategist

Failed sales of iPhone 8 hit Apple and its suppliers


09/26/2017 - 14:36



American corporation Apple lost more than $ 56 billion of market capitalization. Taiwanese, South Korean and Chinese component manufacturers also suffered tangible losses after it turned out that the world sales of the new smartphone were weak.



pixabay
pixabay
The lower demand for iPhone 8 smartphones resulted in serious financial losses for both the company itself and its foreign suppliers.

According to MarketWatch estimates, the total decrease in the company's shares on Nasdaq since September 11, the day before the start of sales in various countries of the world, was 6.8%, taking into account the decline in Apple's quotations by 1% on Monday, September 25. Thus, Apple lost about $ 56.6 billion of market capitalization due to the weak demand.

Shares of the Taiwanese corporation Hon Hai Precision, also known as Foxconn, fell more than 11% since the sales started. During the same period, the drop in quotations of another Taiwanese supplier, Apple, Pegatron Corp, exceeded 12%.

The Wall Street Journal notes that quotes of the Taiwanese company Catcher Technology, which manufactures cases for Apple smartphones, fell by 25% in September, which was the worst result for the company in the last 9 years.

Shares of South Korean LG Innotek descended by more than 12%. As noted by Bloomberg agency, shares of Chinese suppliers of Apple also fell significantly against the backdrop of weak sales of iPhone 8. 

Earlier, Ming Chi Kuoanalyst Ming Chi Kuo, famous for publishing insider data about Apple, said that the demand for smartphones iPhone 8 at the start was weak due to the high interest in the jubilee model of iPhone X

Experts say that the fault for the weak interest in the iPhone 8 and iPhone 8 Plus lies entirely with Apple, which released iPhone X simultaneously with the eight model. iPhone X bypasses the 4.7-inch and 5.5-inch flagships in many ways.

Ming Chi Kuo notes that iPhone 8 and iPhone 8 Plus were available on the day of sales start (September 22) or a maximum within a week - depending on the model chosen. At that, demand for the jubilee iPhone X Apple cannot be fully satisfied up to the first half of 2018.

The analyst previously assumed that sales of iPhone X will amount to 50 million copies before the end of 2017. Now, however, the forecast is reduced to 40 million units. Still, the company will be able to increase shipments of the new smartphone in the next year and sell about 90 million units of iPhone X in 2018.

According to insiders, Apple is producing less than 10 thousand iPhone X per day, which is associated with production problems. Meanwhile, experts believe that the delay in the release of the new iPhone will not affect attitude of Apple’s users.

Analysts of TrendForce expect that the total number of released iPhone will increase by almost 5% to 227.5 million this year, and the release of the model with OLED-screen will promote popularization of smartphones with such displays. 

source: bloomberg.com, macrumors.com




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