By Zola Ray
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The long-anticipated release of the iPhone X may be falling flat as many are deciding it isn't worth the money.
When the holiday shopping season came to a close, analysts noticed lower-than-expected demand, Bloomberg reported Tuesday. Apple shares fell Tuesday, and analysts lowered the projections of shipments of the iPhone X for 2018's first quarter.
The iPhone X pricing starts at $999, while the iPhone 8 retails for as low as $699 on the Apple website.
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"After the first wave of demand has been fulfilled, the market now worries that the high price of the iPhone X may weaken demand in the first quarter," Zhang Bin, an analyst with Sinolink Securities Co, said in a Monday report, adding that handset shipping could dip to 35 million, which would be 10 million less than previously estimated, Bloomberg reported.
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In the first quarter of next year, shipments are expected to fall from 30 million units to 25 million, JL Warren Capital LLC said Friday in a memo to its clients, which cited the device's "high price point and a lack of interesting innovations" as a reason for the low demand, Bloomberg reported.
The shares of suppliers fell, as well. Lumentum and Pegatron dropped by 3 percent, Skyworks and Finisar dropped by 2 percent and Foxconn dropped by 1 percent, CNN reported Tuesday. Perhaps most notably, Genius Electronic Optical, a company that creates lens modules for the iPhone, fell by greater than 11 percent.
In November, Apple CEO Tim Cook said that pre-orders for the device were "very strong," CNN reported last month. Apple has not publicly released sales figures for the iPhone X.
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Ewan Spence of Forbes wrote earlier this month that the poor sales aren't such a bad thing for Apple.
"By launching the iPhone 8, 8 Plus, and X, all at the same time Tim Cook and his team were being as honest as possible with the market," Spence wrote. "They know the iPhone 8 family would launch immediate[ly] and the iPhone X would follow a month later. And maybe the iPhone 8 sales would be a surprising success."
But it was not only other Apple products that drew consumers away from the iPhone X. Samsung is a strong competitor, coming back from its Galaxy Note 7 recall debacle in full force. People in China also are being drawn to Chinese companies such as Oppo, Huawei and Xiaomi, Bloomberg reported.
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