Analyst says iPhone X sales are ‘worse-than-expected,’ downgrades key Apple supplier

KeyBanc Capital Markets says demand for the iPhone X is below expectations and less than Apple's iPhone 8 models.
The firm blames iPhone X's high price point and lack of promotions.

Recent reports of meager Apple iPhone X sales is also correct, consistent with one Wall Street firm.

Taiwan's Economic Daily reported in late Dec the technical school big can cut its forecast for the iPhone X, citing unidentified sources. The report spurred a sell-off in Apple's stock the subsequent day.

Now, KeyBanc Capital Markets is telling purchasers that demand for the iPhone X is below expectations and fewer than Apple's iPhone eight models.

"While iPhone X provide has improved meaningfully and remains terribly lean, feedback indicates sell-through has been somewhat unsatisfying," analyst John Vinh wrote in a very note to purchasers Sunday. "IPhone X demand was under the iPhone 8/8 and attributable to the worth tag and restricted promotion. However, the inventory level remains healthy given Apple simply resolved the provision constraint. supported our conversations with carriers, we tend to saw worse-than-expected iPhone X demand."

As a result, Vinh down his rating for Cirrus Logic, a number one supplier of audio chips to smartphone manufacturers, to sector weight from overweight. Apple represents seventy nine % of Cirrus Logic's sales, consistent with FactSet.

Apple's stock was flat Mon morning, whereas Cirrus Logic fell two.2 percent.

"Our latest French telephone surveys indicate this iPhone 8/X is unlikely to be a catalyst for the [Cirrus Logic] stock as iPhone X sell-through has been unsatisfying despite meaningful enhancements in provide," Vinh wrote.

The analyst noted that total iPhone demand "appears inline" to the firm's estimates attributable to iPhone eight promotions.

"Our latest survey indicate buy-one-get-one-free (BOGO) promotions across all four major carriers for the iPhone 8 were effective in driving healthy sell-through and keeping inventories under control," he wrote.

Apple and Cirrus Logic failed to at once reply to requests for comment.

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