Weak iPhone 8 demand pulls Apple shares down

Apple

Apple Inc’s shares plunged virtually 3 percent on Thursday on indications of feeble demand for the iPhone 8 causing investors and analysts to doubt the company’s faltered release strategy for its latest handsets.

Wireless telecommunications service providers in the U.S. and Canada have announced a slow third quarter customer upgrades. Meanwhile, some expected an increase after the iPhone X release in November. The high price tag of the phone could also weigh on its demand.

The  chief executive of the largest mobile network in Canada ,Roger’s Communication, said that the craving for the iPhone 8 and 8 plus, which were released on September, had been “anemic”, the most recent indications of weak sales for the said handsets ahead of November 3 release of the pricier iPhone X.

Yet some analysts stated that overall phone production seems to be in line with their previous expectations, and that it is uncertain whether frail iPhone sales would affect iPhone revenue and margins because consumers may still be purchasing more profitable previous models with more storage capacity.

Matt Ellis, Chief Financial Officer of Verizon Communications Inc. stated that the number of third quarter phone upgrades declined against its preceding years, but that he assumed an upgrade swell when the iPhone X is released.

The unpredictability regarding the demand combined with a Taiwan media news of a production cut of the iPhone 8 dragged Apple shares down 2.8 percent by noon.

According to U.S. wireless carrier AT&T, its third quarter postpaid handset upgrades plunged by approximately 900,000 from the previous year.

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