But some analysts said overall phone production looked in line with their earlier expectations, and that it is unclear whether weak iPhone 8 sales would hurt iPhone revenue and margins because users may still be buying more profitable older models with more memory. Verizon CFO Matt Ellis said there has definitely been a drop in sales compared to previous year, but he expects a large jump when the iPhone X is released.
In what appeared to highlight the tepid demand for the iPhone 8 series, Newsmax Finance cited a report by Taiwan-based Economic Daily News that claimed that Apple had significantly lowered its November and December orders for the two iPhone models from overseas manufacturers.
You're going to need a whole lot of luck if you want to get your hands on an iPhone X when it comes out on November 3.
A report mentioned a few days ago that the iPhone 7 was actually outselling the iPhone 8. "Inventory is a question mark in terms of what we will get". Analyst thoughts aside though, this is still the first time iPhone production has been reduced so early in the product life cycle.
The iPhone 8 and iPhone 8 Plus, released on September 22, arrived with just minor improvements over the iPhone 7 and iPhone 7 Plus.
If these numbers are correct, there is a high chance that Apple will not have enough iPhone X to offer when they release it next month.
All that said, the real test for Apple will be whether or not consumers flock to the iPhone X in droves.
But there are also concerns that the more expensive phone marking the iPhone's 10th anniversary may see a muted reception compared to the frenzy that normally greets Apple phone launches.
Rogers Communications CEO Joe Natale said during an interview with Reuters that iPhone 8 and iPhone 8 Plus sales have been anemic so far. Even taking into account what may very well be staggering demand for the iPhone X, slashing iPhone 8 production by 50% isn't exactly an encouraging sign.