With Apple’s share price at an all time high in the first quarter of 2018 at $180.10 , Apple has suffered a drop recently of 1.59% due to a research note by JP Morgan saying there is an expected decrease in sales expectations. On Tuesday, share price closed at $177.04 and lowered to $174.22 by Wednesday.
JP Morgan reduced it’s sales forecast from from $4.24 billion to $4.11 billion. Other financial firms are also getting of the iPhone X bandwagon, reporting that iPhone X sales were reduced from 31 million to 25 million in the month of March.
Apple is reducing production of the iPhone X as the $999 phone is not doing as well as they expected. With investors getting nervous about how the iPhone is looking in the eyes of consumers, share prices have taken a hit. With more consumers in the Asian market opting for cheaper options like a Samsung, Oppo Electronics or Vivo- the iPhone X is not selling very well in a very large consumer market. The phone also did not fair too well during shopping season in either Europe or the United States.
The iPhone X was supposed to draw in tons of revenue, as it was the first phone with a significant design change after the iPhone 6. So not only is Apple not making enough sales, but it was expecting to make a large amount of sales, which added salt to the wound for the company.
USB analysts reported that the amount of people looking to upgrade to the iPhone X fell from 43% to 37%.