New iPhone leak 'confirms' Apple's biggest problem

Technology

Last week, Apple shares fell over 2% on the reports of low iPhone 8 sales. Now, a supply-chain source in Taiwan has reportedly claimed that Apple has cut the production of both iPhone 8 and iPhone 8 Plus smartphones.

To further compound the problem for the Cupertino giant, there are reports of the companmy struggling with iPhone X production. According to research firm KGI, only 2-3 million units of iPhone X may be available at launch. The number appears quite less considering the high demand that many analysts are expecting of the company's tenth-anniversary edition. Most carriers are confident that iPhone upgrade rates will improve once iPhone X goes on sale.

Some analysts even claim that Apple may have underestimated the demand for iPhone X. Despite, its high price they see a big demand for the smartphone.

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Coming to iPhone 8 and iPhone 8 Plus' sales, this is the first time ever in iPhone's history that production of some iPhone models has been reduced so early in the cycle says a report in Taiwan's Economic Daily News.
Recently, broker KeyBanc Capital Markets too had claimed that last year's iPhone models -- iPhone 7 and iPhone 7 Plus -- are selling better than the current-generation iPhone 8 and iPhone 8 Plus smartphones. The brokerage report cites carrier store surveys done in the US and UK.

KeyBanc analyst John Vinh wrote in a client note, "Many respondents indicated that a meaningful portion of customers are buying iPhone 7 in lieu of the new iPhone 8, given the lack of significant enhancements in the new phone." He added, "While iPhone 8 starts from $699 in the United States, iPhone 7 is retailing from $549 after a price cut."

Vinh further added that feedback from stores shows that most customers appear to be waiting for iPhone X and some also want to compare the iPhone X with other models before buying.

He also saw lack of promotions also being one of the reasons for the poor sales of iPhone 8 and iPhone 8 Plus. "While carriers continue to offer promotions for the new iPhone 8, they have been much more modest compared to the iPhone 7 launch last year," wrote Vinh reportedly.

Top US carrier AT&T too recently revealed that it saw 900,000 fewer smartphone upgrades in Q3 compared to the year ago quarter.
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Source: gadgetsnow