Apple (Nasdaq: AAPL) investors were hoping the unveiling of the new iPhone 8 and iPhone X models would propel the stock to new all-time highs. Instead, a string of negative headlines this week have Apple stock trading more than 5 percent lower than it was on the day of Apple’s big iPhone event earlier this month.
The week got off to a bumpy start for Apple when Rosenblatt Securities analyst Jun Zhang wrote that iPhone 8 orders have been disappointing in China. Rosenblatt’s research indicates there were 1.5 million iPhone 8 orders on Chinese e-commerce website JD.com during the first three days it took them. There were roughly 3.5 million orders for the iPhone 7 in the first three days it was available.
Zhang says sluggish iPhone 8 demand could be a sign buyers are waiting for the higher-priced iPhone X model, which is not scheduled to go on sale until Oct. 27. However, he said Apple’s iPhone X production “might not be able to meet demand in [the] December and March quarters.”
To make matters worse, Arthur Wood Equity Research analyst Jeff Johnston says a number of experts and users have given the iPhone 8 “lukewarm” review, according to Barrons. He says weak demand isn’t limited to China and estimates North American demand is also down more than 50 percent from a year ago.
The string of negative headlines continued on Thursday when Raymond James analyst Chris Caso wrote that meetings with Asian iPhone suppliers suggest iPhone X production may be delayed more than anticipated.
“While our checks are ongoing, initial feedback from our meetings suggests that final production of iPhone X has not yet begun, with production expected to commence in mid-October,” Caso says. “That production start is about a month later when compared to expectations a month ago and about two months later than expectations at the end of June.”
Despite the market’s concerns about the iPhone 8 and iPhone X, B. Riley analyst Craig Ellis says…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!
