Shares fall as analyst report indicates weak iPhone 8 demand

SAN FRANCISCO — Apple shares fell the most in more than a month after an analyst said demand for the iPhone 8 is “substantially lower” than for earlier models of the world’s best-selling smartphone.

Pre-order volumes in the US for the iPhone 8 fell below those for the iPhone 7 and iPhone 6, Rosenblatt Securities analyst Jun Zhang said in a note to clients. Demand in China is even lower, the analyst said. Zhang has a neutral rating on Apple shares.

Consumers pre-ordered about 1.5 million handsets on Chinese retail website JD.com in the first three days, compared with about 3.5 million for the comparable period of iPhone 7 orders, Zhang said.

The stock fell as much as 3.1 per cent, the most since August 10. It was down 1.9 per cent to $155.65 at 3:46pm in New York. The iPhone 8 was unveiled last week alongside the iPhone X, which incorporates many more new features.

While the iPhone 8 becomes available in stores on September 22 (September 23 in the UAE) for upwards of $699, the iPhone X will not be available until November and will cost at least $999.

“We understand this does not reflect the iPhone 8 cycle as a whole since the iPhone X has not yet officially launched, but we are concerned,” Rosenblatt’s Zhang said in the note.

iPhone 8 production might need to be reduced and “the iPhone X production ramp might not be able to meet demand in December and March quarters,” Zhang said. —