Apple's stock is backtracking from its recent highs amid mounting concerns that iPhone X sales will fall short of the high hopes for a device that brought facial recognition technology and a $1000 price tag to the company's flagship product line.
Speculation about disappointing demand for the iPhone X has been swirling for the past week, contributing to a 6 per cent decline in Apple's stock since it hit an all-time high of $180.10 on Jan. 18. The shares sank $3.11 to $168.40 in Monday's late afternoon trading, translating into a nearly $60 billion loss in the company's market value since the stock last peaked.
Concrete evidence of how the iPhone X is faring should emerge on Thursday when Apple is scheduled to release its fiscal first-quarter earnings. The period spans from October through December, covering the early November release of the iPhone X and the holiday shopping season that typically brings Apple's biggest iPhone sales of the year.
Apple didn't respond to a request for comment on Monday.
For now, many investors appear to be focusing on analyst comments and media reports that Apple is dramatically reducing its iPhone X orders with its suppliers.
J.P. Morgan analyst Narci Chang said last week that manufacturing of Apple's flagship phone could be cut in half during the first three months of this year in reaction to weakening demand. But RBC Capital Markets analyst Amit Daryanani believes Apple's reported iPhone sales during the past quarter will be higher than anticipated and the projections for the current quarter won't be as lacklustre as many people fear.
The iPhone X is unlike anything Apple has ever made in the product line's 10-year history. It features an OLED screen that spans from one edge of the device to the other and displays images in more vibrant colours. It also relies on technology that recognises a user's face to unlock the device and animate emoji's.
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