Analysts cut iPhone X shipment forecasts

Apple looks like it’s having a not-so Merry Christmas.

Analysts have lowered iPhone X shipment projections for the first quarter of next year, citing signs of lackluster demand at the end of the holiday shopping season.

Sinolink Securities analyst Zhang Bin said in a report Monday that handset shipments in the period may be as low as 35 million, or 10 million less than he previously estimated. “After the first wave of demand has been fulfilled, the market now worries that the high price of the iPhone X may weaken demand in the first quarter,” Zhang wrote.

JL Warren Capital LLC said shipments will drop to 25 million units in the first quarter of 2018 from 30 million units in the fourth quarter, citing reduced orders at some Apple suppliers. The drop reflects “weak demand because of the iPhone X’s high price point and a lack of interesting innovations,” the New York-based research firm said in note to clients Friday.

“Bad news here is that highly publicized and promoted X did not boost the global demand for iPhone X,” according to the note.

Apple has been counting on a redesigned 10th anniversary iPhone to boost shipments as its market value advances toward $1 trillion. The company, based in Cupertino, Calif., is facing new challenges from Samsung Electronics, which is quickly recovering from the Galaxy Note 7’s recall after fires. In the meantime, Chinese brands such as Huawei, Oppo and Xiaomi also are luring away potential customers in China and other emerging markets such as India.

Apple is said to have trimmed its firstquarter sales forecast to 30 million units from 50 million, Taiwanese newspaper Economic Daily News reported, citing unidentified supply chain officials. An Apple representative declined to comment on production arrangements. Apple contractor Foxconn said in an emailed statement that company policy prevents it from commenting on such matters.

Apple received a rare downgrade last week from Nomura Instinet analyst Jeffrey Kvaal, who said iPhone X sales as well as other positive factors are already baked into the stock price.

Customers seem to be opting for cheaper models of the iPhone, according to Cowen & Co., which says that suggests Apple failed to cram enough new technology into the iPhone X to justify a $999 price tag.

New features such as facial recognition herald Apple’s vision, but issues such as the lack of augmented-reality apps have cooled buyer interest in those technologies.