Shares of companies that supply parts to Apple, including Broadcom, Skyworks Solutions, Finisar and Lumentum Holdings, all moved lower. Loop Capital, a Chicago-based firm, predicts 40-45 million shipments of the iPhone X.
As far as the iPhone SE's imaging department is concerned, it features a 12-megapixel primary camera along with dual-tone LED flash. The firm suggested in a note to clients that the drop is mainly due to "iPhone X's high price point and a lack of interesting innovations".
In truth, only Apple has any idea as to how iPhone X sales are measuring up this quarter. Consumers had long expected that the company had modified devices after purchase, and in a statement last week the company admitted it "released a feature for iPhone 6s and iPhone SE to smooth out" issues when the battery was unable to power the phone, resulting in lower processing power.
Apple has received a less-than-desirable sales prediction for the first quarter of 2018.
Bond prices didn't move much. If Apple cuts prices by some percentage, it has to have a reasonable degree of confidence that total unit shipments will grow by greater than that percentage. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating, forty-three have issued a buy rating and one has issued a strong buy rating to the company's stock. There is also an LCD model that is reportedly in the works and is expected to cost between $649-699 and rock an edge-to-edge glass.
The point is that a lot of thought is going to need to go into any potential price reductions. The OLED-screen iPhone X, which starts at $999, hit the market on Nov. 3. The company has a debt-to-equity ratio of 0.73, a current ratio of 1.28 and a quick ratio of 1.23. That device could come in at a higher price point than this year's iPhone X did, which could give Apple some wiggle room to reduce the pricing of the direct successor to the iPhone X while maintaining overall iPhone average selling prices.
Remember to take this rumor with a pinch of salt for now, but we'd still like to know your thoughts on what Apple's decision should be moving into 2018.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
"Some media reports are likely highlighting cuts at specific iPhone 8 component suppliers and Android orders", Zhang said in a note obtained by Street Insider. That's right - they think these 10 stocks are even better buys.