Apple iPhone X Dragged Down By Biggest Feature

iPhone 8 production cut in half, claims supply chain source; AAPL shares drop 1.5%

This photo is why everyone is so excited about the iPhone X

There are no concrete iPhone 8 sales numbers available - Apple didn't respond to our request for the data - but outside sources have provided anecdotal evidence that the device hasn't been well received by consumers.

Shares in Apple have fallen slightly amid concern over poor demand for its new iPhone, and cuts to its production run. The anticipation of the more advanced iPhone X would have caused the low iPhone 8 sales after the opening weekend.

KeyBanc Capital Markets analyst John Vinh recently said a carrier store survey suggested the iPhone 7 was outselling the iPhone 8. And that's because the design of the iPhone 8 models is around four years long, a lifetime in phone years.

Much of this can be attributed to the fact the handset is very similar in appearance to the iPhone 7, which sells for less. Gartner and KGI Securities analyst Ming-Chi Kuo predict the November release date, and possible limited quantities at launch, will push stronger sales of the iPhone X into 2018.

While the iPhone 8 is now being sold, the iPhone X will be released on the 3rd of November, but the units will still be sold sparingly until next year.

But the debate - and hints from some analysts and a Taiwan media report of a cut in iPhone 8 production - was enough to push Apple shares down 2.8 percent by lunchtime in NY. If the report is accurate, then this is going to be the earliest production cut in the history of the iPhone.

The Apple iPhone X has a lot to offer but the one thing that everybody is looking forward to seeing is the new facial recognition system that would be exclusively offered on the new Apple iPhone X this year.

"The Street is hyper-sensitive to any speed bumps around this next iPhone cycle and (that) speaks to the knee-jerk reaction we are seeing in shares", said Daniel Ives, chief strategy officer at research house GBH Insights in NY.

Apple has released two tiers of iPhones at once before.

The company still has the iPhone X waiting in the wings, arguably the most anticipated smartphone release in recent memory. "A new price point is also implemented to reflect the flagship nature of iPhone X".

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