"Anemic" iPhone 8 demand drags Apple shares lower

Daniel Ives, chief strategy officer at GBH, predicts only 20 to 25 percent of iPhones sold over the next 12 to 18 months will be an iPhone 8 or iPhone 8 Plus, according to Reuters.

Apple shares fell 2.3 percent following the news at the market's open in response. Again, these rumors weren't backed up by any hard statistical evidence from Apple - but they all serve as fuel to the fire for those who are damning the iPhone 8's release as a failure.

Apple has never cut production of an iPhone so early in the cycle, according to Taiwan's Economic Daily News, which first reported on the cutback. "iPhone X establishes a new value level for Apple customers that want a premium, futuristic device". Perhaps one interesting thing to note is that even on launch day, the iPhone 8 was still readily available, something that is quite unusual when compared to other models at the time of launch, where they are usually sold out. The anticipation of the more advanced iPhone X would have caused the low iPhone 8 sales after the opening weekend.

The circumstances of the launch four years ago were different - the 5C was more clearly marketed as being an inferior version of the 5S, rather than the 8 and X's confusing numerical relationship - but Apple was able to recover and hold onto its place as the most valuable company in the world.

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Early adaptors appear to be taking a wait-and-see approach to the iPhone 8, which rolled into stores in late September, just weeks ahead of the game-changing iPhone X. I expect the baseline iPhone 8 to get a price cut to $599 next year and the baseline iPhone 8 Plus to be cut to $699 once the 2018 iPhones are released. Apple analyst Ming-Chi Kuo has stated that due to problems with the mass production of the "Truedepth" camera sensor for the Face ID facial recognition system, the iPhone X will not go into full production until next 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.

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.

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