Apple Shares Tumble on Weak iPhone 8 Preorder Reports
Apple shares fell off as much as 3.1 percent on Wednesday, their largest drop-off in more than a month, after an industry analyst reported that demand for the iPhone 8 is “substantially lower” than earlier models of one of the world’s most popular smartphone brands.
According to Rosenblatt Securities analyst Jun Zhang, preorder volumes on the iPhone 8 in the U.S. have fallen far below the totals for the iPhone 7 and iPhone 6. Demand in China, an even more important market right now for Apple, has proven to be even lower. In a note to clients, Zhang said that consumers preordered roughly 1.5 million handsets on the Chinese site JD.com in the first three days, down from around 3.5 million for the same period for iPhone 7 preorders last year.
On the surface, this reads terribly for Apple. We’re talking about the product that accounts for more than two-thirds of the company’s annual revenue here, after all. And preorder numbers like that reflect poorly on the company’s projected $49 billion to $52 billion in revenue it expects to draw in the three months through September—a projection that investors believed signaled “resilient iPhone demand,” according to Bloomberg.