Well, iPhone 8 sales have been the talk of the town since its release. And we are here again, with two absolutely opposite views.

The CEO of Rogers Communication, Canada’s largest mobile network, has called iPhone 8 sales as ‘anemic,’ while Verizon’s CFO reassures that what we’re seeing is probably nothing to be concerned about.

An analyst has bent in on the side of Verizon, proposing that the 2.37% fall in AAPL’s share price yesterday was a sudden response which is unlikely to be justified.

AAPL’s share dropped down all of a sudden yesterday, by almost 3% at one point in the day, in reply to a supply-chain claim that Apple has ordered suppliers to cut iPhone 8 production in half.

In an update to an earlier story, Reuters reports Verizon’s commentary.

Verizon Communication’s Chief Financial Officer Matt Ellis said the number of third-quarter phone upgrades fell versus previous years, but that he expected an upgrade surge when the iPhone X is released.

“I think what you’re seeing there is a difference in timing of some of the new devices coming out versus what we’ve historically seen,” Ellis told an earnings call.

An analyst agreed.

“The Street is hyper-sensitive to any speed bumps around this next iPhone cycle and (that) speaks to the knee-jerk reaction we are seeing in shares,” said Daniel Ives, chief strategy officer at GBH Insights in New York.

“iPhone 8 demand has been naturally soft out of the gates with the main event being the iPhone X launch in early November. (But) this is the early innings of what we believe is the biggest iPhone product cycle with X leading the way.”

One carrier store survey proposed that the iPhone 7 may be surpassing the latest iPhone 8, but analysts believe that even that might not be a bad news for Apple’s bottom-line.

Some analysts said […] it is unclear whether weak iPhone 8 sales would hurt iPhone revenue and margins because users may still be buying more profitable older models with more memory.

The latest KGI report predicts that about 2-3M iPhone X units will be available at launch, with component yields still holding back production.

Comments Below

comments