Rumor claims Apple cutting iPhone 8 production orders in half

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Comments

  • Reply 21 of 95
    radarthekatradarthekat Posts: 3,403moderator
    This year Apple has the broadest line of iPhones they’ve ever had, from five models last year to eight this year, once the X begins shipping.  Between those waiting to order an X and those taking advantage of life wer prices across much of the line, it’s reasonable to expect meaningful reduction in demand for the 8/8+ versus the 7/7+ last year.  

    The question is really, where is demand for iPhone this year versus past years?  As long as demand remains strong for iPhone (the entire line, in aggregate) then I expect the higher end, higher priced models will outweigh any drag on revenue from Apple having a broader array of lower-priced models on sale.  That and increased demand for lower priced models resulting in higher overall sales volumes of those.  Apple is skating to where the puck will be, in six to nine months, when X production is in balance with demand.  Perhaps, in the fullness of time, Apple will have sold more overall units while also retaining or even increasing ASPs, averaged over the full period from launch of the 8/repricing of the full broadened line to that day in the future when X supply is in balance with demand.  Apple doesn’t play the game to be ahead at the end of each quarter; they play a longer game than Wall St. 
    GeorgeBMac
  • Reply 22 of 95

    NY1822 said:
    bad problem to have, people want to buy your more expensive product...oh, the agony
    What evidence do we have to make that claim considering the X isn’t available to order yet? If we knew that to be the case would the stock be down 3% today?
    edited October 2017 airnerd
  • Reply 23 of 95
    xbitxbit Posts: 315member
    It was a pleasant change visit an Apple store and pick up an iPhone 8 Plus without the usual pre-order madness. :) 
  • Reply 24 of 95
    volcanvolcan Posts: 1,799member
    I'm sort of a peak iPhone guy. I'm still using an iPhone 6. I used to upgrade every two years when on subsidy but now I really don't want to pay for a new phone. This one works just fine for my needs. I recently bought two refurbished iPhone 6s phones for my two girls to replace their iPhone 5 phones even though they were also still working fine. Just wanted to give them a bigger screen and TouchID. I'll get a new phone when mine breaks, but it will probably be a refurb since they are a lot cheaper.
    edited October 2017 GeorgeBMac
  • Reply 25 of 95
    mike1mike1 Posts: 2,809member
    Personally, I will wait until I can see and touch an X before deciding which to buy. I'm thinking there's a 50-50 chance I'll wind up with an 8 in November. If I do, I'll use the Upgrade program to get the X's replacement next year. The fact that the X will be released in November did change the timing of my purchase, not whether there will be one.
    freerangemacplusplus
  • Reply 26 of 95
    lkrupplkrupp Posts: 9,636member
    Articles like this one always release the dogs of confirmation bias. If you’re looking for confirmation that Apple is failing and that your bias against what Apple has released is true, this is what you want to see. As for fanboys this article could mean you are whistling past the graveyard so you ignore it. Meanwhile it could just be the usual stock manipulation going on. Since the stock market operates on fear and greed this report scares timid investors into selling out of fear. Those short on AAPL are the winners today. And the beat goes on.
    freerangeStrangeDaysGG1
  • Reply 27 of 95

    If this rumor is true, it's probably because they want to shift production and components to the X. ;-)

    What are people thinking? That Apple will sell less iPhones? It looks like that more people (than expected) will buy the more expensive X. That is actually good news for investors.

    The iPhone 8 is a great phone> But I don't understand why it exists next to an iconic X model. If you want to spend money on a new phone, the X is most people's choice. Maybe it was better if they upgraded the iPhone SE and released a iPhone X and X Plus. The 6s and 7 are also still around.

  • Reply 28 of 95
    NY1822NY1822 Posts: 621member
    larrya said:
    NY1822 said:
    so comical peoples reactions to this:
    Hellooooooo...they are set to release the X.
    People are acting like the 8 is the only phone.

    if i owned an ice cream store and just opened it, and could only sell vanilla for 2 months until my shipment of chocolate arrived, would i keep producing my vanilla cakes at the same rate as when i originally opened knowing chocolate will now be on sale?
    You’re screwed because you’re selling cake at an ice cream store 😀
    hahaha...i was thinking ice cream cake
  • Reply 29 of 95
    NY1822NY1822 Posts: 621member

    NY1822 said:
    bad problem to have, people want to buy your more expensive product...oh, the agony
    What evidence do we have to make that claim considering the X isn’t available to order yet? If we knew that to be the case would the stock be down 3% today?
    if you read the research papers like i do by the firms that cover the stock, there are endless surveys supporting interest in X and waiting to buy .

    Lets not stick your head in the sand and pretend the X doesn't exist 
    edited October 2017 canukstormfreerangeStrangeDays
  • Reply 30 of 95
    lkrupplkrupp Posts: 9,636member

    NY1822 said:
    bad problem to have, people want to buy your more expensive product...oh, the agony
    What evidence do we have to make that claim considering the X isn’t available to order yet? If we knew that to be the case would the stock be down 3% today?
    We have no evidence that the rumor is true either (except for “unnamed sources”) yet people are selling because of it? The entire tech sector is down today if you hadn’t noticed but AAPL is down a little more. In the last week AAPL jumped to $160. So what does that mean in the grand scheme of things?
    edited October 2017
  • Reply 31 of 95
    zoetmbzoetmb Posts: 2,602member
    airnerd said:
    I could see this as happening.  This is purely anecdotal but I don't know a single person with an iPhone 8.  Everyone either is sticking with their current iPhone or wanting to wait to see what the X actually has going for it.  No one seems to care about wireless charging. Everyone that wasn't a die hard Apple ecosystem person went to Android if wireless charging was a big deal.  If they wanted it and are part of the Apple Ecosystem then they are wanting the better phone so waiting for a 

    Just my opinion and not hating on Apple.  
    There's a week to two week shipping delay which means they're not making phones fast enough, but Apple has halved the orders?   I don't think so.  This kind of thing happens when Apple shifts from one supplier to another -- the losing supplier makes these pronouncements.   Or, if people are waiting for the X that doesn't hurt Apple in the medium run, although it hurts cash flow a bit now - in fact it helps Apple if Apple makes more on the X than the 8. 

    But if it is happening, I would say that price combined with the fact that most of the phone companies don't subsidize phones much anymore is a big factor.   Regardless of how much of the phone's cost was buried in the monthly fees, the fact is that you could walk in and walk out with an iPhone for $200 (or $300 with more memory).  You largely can't do that today.   I've posted several times before that I think Apple has lost some some perspective in part due to Apple executives making incomes that are 100x what average people earn.   And maybe people are realizing that they don't need to upgrade every year.   I'm still using an iPhone6.   I just might stick with it for another year. 
    airnerd
  • Reply 32 of 95
    An article a few days ago said that Apple is selling more iPhone 7’s than 8’s. They have comparable profit margins. Also, some potential iPhone 8 buyers are waiting for X. They have larger profit margins. In short, the iPhone 8 is being cannibalized by two other iPhones. The rumor could be true, but does not imply that Apple earnings will be down.
  • Reply 33 of 95
    I’ll holdout for the X-plus. But it is funny how Touch ID is not as responsive after the update on my 7-plus lol
  • Reply 34 of 95
    canukstormcanukstorm Posts: 2,557member
    mike1 said:
    Personally, I will wait until I can see and touch an X before deciding which to buy. I'm thinking there's a 50-50 chance I'll wind up with an 8 in November. If I do, I'll use the Upgrade program to get the X's replacement next year. The fact that the X will be released in November did change the timing of my purchase, not whether there will be one.
    I think that's what many people are doing & once they see the iPhone X in real life a decision will be made.
  • Reply 35 of 95
    SoliSoli Posts: 10,032member
    This article could easily be true because they need to rejigger their finite assembly lines to support iPhone X production. This may have been planned all along.
  • Reply 36 of 95
    canukstormcanukstorm Posts: 2,557member

    If this rumor is true, it's probably because they want to shift production and components to the X. ;-)

    What are people thinking? That Apple will sell less iPhones? It looks like that more people (than expected) will buy the more expensive X. That is actually good news for investors.

    The iPhone 8 is a great phone> But I don't understand why it exists next to an iconic X model. If you want to spend money on a new phone, the X is most people's choice. Maybe it was better if they upgraded the iPhone SE and released a iPhone X and X Plus. The 6s and 7 are also still around.

    Speaking of an upgraded SE, if this article is true we should expect to see it around early Spring 2018

    http://focustaiwan.tw/news/aeco/201708040018.aspx

    Maybe at that time the iPhone 6S / 6S Plus will be dropped from the lineup.
    edited October 2017
  • Reply 37 of 95
    jfc1138jfc1138 Posts: 3,090member
    Translation: iPhone X production is far better than anticipated so the cheaper phones aren’t needed to fill the gap. 
    jdgaz
  • Reply 38 of 95
    canukstormcanukstorm Posts: 2,557member
    jfc1138 said:
    Translation: iPhone X production is far better than anticipated so the cheaper phones aren’t needed to fill the gap. 
    For those looking to purchase iPhone X, that would be a god send.
  • Reply 39 of 95
    jdgazjdgaz Posts: 384member
    X marks the spot for me.
  • Reply 40 of 95
    larryalarrya Posts: 583member
    I might get the 8, but not before the X is out, in case it brings some better incentives to move the lesser models. 
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