Apple shares fall amid claims that iPhone X will sell 20m fewer units than expected
Concerns that the iPhone X will underperform this holiday season have caused shares in Apple and its suppliers to stumble on Tuesday.
The Nasdaq Composite Index fell the most in a week and the S&P 500 edged lower, with the famed tech company among the worst performers.
Apple’s shares fell 2.8 per cent to US$170.11 after reports hinted at lower-than-expected iPhone X shipments in its financial year first quarter.
Apple will slash iPhone X quarterly sales forecast to 30 million units from 50 million units, Taiwan’s Economic Daily reported on Monday, citing unnamed sources.
A report from brokerage JL Warren Capital estimates 25 million iPhone X shipments in Q1, although Jefferies sees shipments at 40 million units.
Morgan Stanley reported last week that iPhone X adoption rate in China is faster than the iPhone 8 or 8 Plus, fuelling acceleration of market share gains.
Shares of Apple suppliers edged lower. Micron Technology is down 5 per cent, Qorvo Inc fell 4 per cent, Broadcom Ltd is 2.9 per cent off, Lumentum Holdings Inc declined 4.8 per cent, Skyworks Solutions Inc fell 2.7 per cent, Cirrus Logic is 2.4 per cent off, Finisar Corp is down 2.7 per cent, Synaptics Inc fell 1.6 per cent, and ON Semiconductor dropped 1.7 per cent.
Despite the losses on Tuesday, Apple stock is up 47 per cent in 2017.
Apple has been counting on a redesigned 10th anniversary iPhone to boost shipments as its market value advances toward US$1 trillion.
The Cupertino, California-based company is facing new challenges from Samsung Electronics, which is quickly recovering from the Galaxy Note 7’s recall after the units showed a propensity to burst into flame.
In the meantime, Chinese brands such as Huawei, Oppo and Xiaomi are also luring away potential customers in China and other emerging markets such as India.
The major European stock exchanges were shut and markets overall were quiet as the stellar year for risk assets crawls to its end, with the possible exception of the cryptocurrency roller coaster, which has seen bitcoin rising after a five-day continuous drop.