(Reuters) - The bad demand mark for the iPhone 8 sparked more questions on Thursday about Apple Inc's (AAPL.O) strategy to release two phones within a month by 2017, bringing its stock almost 3 percent lower.
Canada's largest mobile network chief Rogers Communication (RCIb.TO) said that tastes for the iPhone 8 and 8 Plus had been "anemic", adding to a series of hints that sales had gone bad ahead of the launch of the X iPhone in November. 3.
Several sector analysts downplayed concerns, which had depressed Apple for announcing the plan a month ago, saying the overall production of the phone was widely seen to match their previous expectations.
Verizon's Chief Financial Officer Matt Ellis also acknowledged that the number of phone upgrades in the third quarter was lower than in previous years, while emphasizing that he expected a surge when the iPhone X was released.
But the debate - and hints from some analysts and a Taiwanese media report on iPhone production cuts 8 - was enough to push Apple shares down 2.8 percent during lunch in New York.
"Street is very sensitive to any speed bumps around the next iPhone cycle and (it) talks about the spontaneous reaction we're seeing in stocks," said Daniel Ives, chief strategy officer at GBH Insights research house in New York.
"IPhone 8 requests are naturally soft out of the gate with the main launch event of iPhone X in early November. (But) this is the beginning of what we believe is the biggest iPhone product cycle with the leading X."
SUPPLY CHAIN
Apple no longer provides regular updates on sales numbers but indications from supply channels, phone operators and analysts tracking the sector have sparked bad sales news for the latest smartphone updates.
When Apple announced its plans to release both phones before the end of 2017, fans were disappointed mainly because of the iPhone X launch delay until November.
But there are also concerns that more expensive phones - marking the 10th anniversary of the iPhone - may not get many takers.
KeyBanc Capital Markets analyst John Vinh reported this week that shop operator survey suggested the cheaper iPhone 7 had managed to beat his successor just a month after the launch of iPhone 8 which became a dangerous material for brands that usually have fans queuing for the latest upgrade.
Rogers Communications chief Joe Natale said that anticipation is very high for iPhone X but also noted that inventory will be limited and - at Apple's initial price of $ 999 - it is an expensive device.
U.S. wireless carrier AT & T (T.N) also said last week that third-quarter handset shipments increased by less than 900,000 from last year.
"I think what you see is the time difference of some new devices coming out compared to what we've seen historically," Ellis Verizon told a revenue call.
"Obviously Apple is part of it.We split a new device between 8 ... and X. As we enter the holiday season, some new devices come out, we think we'll see strong demand."
Source : http://uk.reuters.com