IPhone 8 sales sluggish as buyers wait for X

When it comes to iPhone 8 sales, the X marks the sweet spot.

In a report on the iPhone 8’s launch weekend, KGI Securities pointed out that shipping times for the newest iPhone are notably shorter for the 8 than they were for the 7, indicating tepid demand.

The iPhone 8’s are shipping in one to two weeks instead of the usual delay of three to six weeks as orders pile in.

KGI attributes the drop to excitement over the iPhone X, which Apple has dubbed “the future of the smartphone.”

Slack interest in the 8 is also being felt in the coveted Chinese market, where it debuted at the same time as in the US.

In a survey of nearly 75,000 Chinese users by Penguin Intelligence, 66 percent of participants who are in the market for a new iPhone indicated that they wanted the X, while 20 percent said they wanted the iPhone 8 Plus and 13 percent said they wanted the 8.

This is particularly surprising in China, where the number 8 is viewed as being lucky.

“China’s demand for the iPhone has fallen over 50 percent from peak levels,” said CFRA Research’s Angelo Zino.

In addition to cutting into the iPhone 8’s sales, the X is also cutting into Apple’s profit margins.

In a report by the tech blog iChunt, Chinese analysts estimated that the total production costs of the iPhone X ends up at $412.75. With a retail price of $999, that leaves the tech giant with gross profit margins of 59 percent.

That’s a healthy number, but down from the 71 percent gross profit margin that Apple had with the iPhone 6S and the 66 percent margin it enjoyed with the iPhone 7.