With the recent release of Apple’s iPhone 8 series, came the negative views of economists and analysts regarding its possible sales in the market.
Apple’s iPhone 8 series was made available to the public less than two weeks ago, only garnering a total of 0.7% shares on its first week in the international market across all iOS-based devices. This is considerably low compared to its predecessors. The iPhone 7 nabbed 1% of the market shares on its first weekend, while the iPhone 6 garnered 2% when it was first released 2 years ago.
Despite this, the previously predicted high market sales of the new iPhone 8/X cycles caused Apple shares to increase – the stock has increased 33% this year, bringing in $200 billion value in the market – which an analyst noted was an overly optimistic response of investors who are not viewing the situation in a more realistic way.
During the past month, Apple has lost at least $50 billion in market value, falling 6 percent. Also, according to a recently conducted survey, only 64 percent of the 4000 consumers answered that they would like to buy the latest iPhone, which is 7 percent less than when the iPhone 7 series released.
An analyst stated that the negative reviews regarding the sales of the new iPhone series have been “excessively negative.”
“We previously estimated the production weighting of new 2017 iPhone models at roughly 50% iPhone X and 50% iPhone 8/8 Plus.” He then further discussed that the reason why the initial release of the iPhone 8/8 Plus caught lower sales compared to the previous iPhone cycles is not that of the new models themselves but because the iPhone X has not yet been included.
Analysts speculate that the pending release of the highly anticipated iPhone X this coming November might be hindering the sales of the iPhone 8 series, stating that the consumers might be waiting for the third iPhone model before making their purchase decisions.
Additionally, Apple has been able to make bigger profits for each iPhone 8/8 Plus unit they sell. A research firm relayed information that an estimated amount of $247.51 is paid for the components of each of its 64GB iPhone 8 units. Excluding the additional costs, such as assembly per unit, it makes a profit of $451.49 with its sale price of $649.
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