Apple shares ended the US Tuesday trading session lower, on widespread reports that demand for the iPhoneX has begun to slow more quickly than previously anticipated. There are also suggestions that Apple could reduce its own sales forecast for the phone.
Apple shares close 2.54% lower at $170.57 Tuesday. Much of that drop was experienced at the open as shares were sharply down from the previous close on Friday Dec. 22nd.
Mixed analyst outlook
While Apple chief executive Tim Cook said earlier in December that he was very pleased with the level of demand for the new iPhoneX in China, there are a variety of sales estimates among analysts.
The iPhoneX sales estimated for the December quarter vary from 25 million units to 45 million units. Sales at the higher end would still likely be lower than Apple’s initial first-quarter sales estimate, analysts say. However, Apple hasn't publicly announced how many they anticipated selling.
Analysts at the low end have said the high price and lack of new, interesting features is weighing on sales. Analysts who see higher sales, meanwhile, point to the number of iPhone owners who haven’t upgrade for a number of years.
Citing sources, a report in the Taiwan Economic Daily paper said that Apple is readying to slash its sales forecast of the iPhoneX to 30 million units, from 50 million.
Apple facing lawsuits
While Apple shares struggle amid the variety of iPhoneX sales reports, it’s also facing nine lawsuits following its admission it deliberately slows down some if its iPhone models as they age.
Eight of the lawsuits have been filed in California. Reports also state the ninth has been filed in Tel Aviv by two Israelis.
The lawsuits are seeking reimbursement for the initial purchase price of the phones and additional unspecified damages from Apple. Some of the complaints also request that Apple is barred from reducing iPhone speeds in the future.