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Apple Slumps on Tepid iPhone X Demand

(Adam Putz, Anthony Mirhaydari – Pitchbook)

Apple shares have been under pressure lately, dropping 6.6% from their one-year high on January 18 and returning to levels last seen in early November, as the hype surrounding the $999 iPhone X—with its bezel-less OLED screen, iconic “notch” and Face ID technology—fades into lost hope.

The Wall Street Journal reported earlier this week that people familiar with the company’s production plans have slashed output for the three months ending March 31 by half, to 20 million handsets. Others familiar with the supply chain said Apple has cut component orders by 60%—a far cry from the frenzied scramble at the end of 2017 to satisfy initial demand amid supply constraints related to the manufacture of the tiny lenses that enable the face-unlocking system.

Deutsche Bank, in a recent note to clients, warned that the iPhone X is falling short of the expected “super cycle” of demand that greeted the iPhone 6. Click here to read more.