Suppliers drop on report of weak iPhone X demand

On Tuesday, Shares in Apple Inc. and several of its Asian suppliers fell after a report by Taiwan’s Economic Daily and comments from some analysts suggested that iPhone X demand could come in below expectations in the first quarter. Apple will slash its sales forecast for the iPhone X in the quarter to 30 million units, down from an initial plan of 50 million units according to unidentified sources.

Shares of Apple have edged slightly lower since the iPhone X debut. They fell 2.5% to $170.57 yesterday.

During a trip to China this month Apple CEO Tim Cook said he “couldn’t be happier” with the demand for the iPhone X in the country. The company also had described pre-orders for iPhone X as “off the charts.” But financial analysts have mixed views on whether such demand has materialized for the premium device, which features an edge-to-edge display and facial recognition technology to unlock the phone.

Apple has not publicly disclosed quarterly sales targets for the iPhone X, which went on sale in November 2017 at a base price of $999 in the United States. Shares of Apple surged 45% this year before the iPhone X launch as investors anticipated interest from iPhone users who had gone years since buying a new one.