Citi says the iPhone X lacks innovation and is too expensive.
Analysts have provided probably the most disappointing iPhone X sales forecasts yet, with Citi saying it thinks Apple will ship just 14 million devices in the first quarter of 2018, down from its original prediction of 27 million.
If it proves to be true, it means total iPhone shipments for the first two quarters of 2018 will be affected. Citi thinks Apple will only ship 51 million devices in the first quarter of 2018, versus its prediction of 61 million, while in the second quarter, it has reduced its estimates from 48 million down to 40 million.
"We reduce our 1Q18E and 2Q18E iPhone build forecast mainly due to sluggish iPhone X demand. For 1Q18E, we now forecast overall iPhone shipment of 51m vs. 61m previously," a Citi analyst note seen by Business Insider read.
"We reduce 1Q18E iPhone X shipment to 14m from 27m. For 2Q18E, we trim total iPhone shipment to 40m from 48m previously as we revise down iPhone X shipment to 7m. Overall, we now model 1H18E total iPhone build of 92m vs. 85m in 1H17E, up 7% [year on year]."
Citi blamed bad sales on the device's lack of innovation and high price point, the publication reported, echoing some of fellow analyst firm Piper Jaffray's revelations earlier in the week (see below).
Both investment analysts explained consumers are more likely to buy the cheaper iPhone 8 than the iPhone X because the new features alone aren't enough to convince people to stump up $US1,000.