Apple shares fall due to worries on iPhone 8 sales

Apple’s shares fell 1.5% in premarket trading on Thursday as brokers and traders speculated over poor demand and cuts in production of iPhone 8, ahead of the launch of the iPhone X, reports Reuters.

The article says that indications from supply channels, phone operators and analysts who track the sector have fueled talk of poor sales for the iPhone 8 and 8 Plus. Rosenblatt Securities analyst Jun Zhang said he believed Apple could cut iPhone 8 production and shift capacity toward iPhone X as the premium phone is expected to sell out quickly.

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“Our research suggests the production mix was 50/50 between iPhone 8/8 Plus and the iPhone X, but iPhone X allocation could shift up to 60-70 percent in December and even more in the March quarter,” he told Reuters.

However, Deutsche Bank analysts played down the importance of any cut in iPhone 8 production in favor of iPhone X.

“We think the market could have over-focused on the production swing in different SKUs, but overlooked that the overall iPhone production is largely on track,” they told Reuters.

Orders for the next gen Apple smartphone will start on Oct. 27, and they’ll ship Nov. 3. The iPhone X will come in 64GB and 256GB models with pricing starting at $999.