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iPhone holiday sales point to weak iPhone X demand

Apple's underperforming iPhone X. (Source: Apple)
Apple's underperforming iPhone X. (Source: Apple)
The first negative holiday quarter of iPhone sales growth suggests that rumors of weaker than expected iPhone X demand were on the money. Despite a record holiday quarter, Apple missed analyst expectations for iPhone sales.

Apple has reported a record holiday quarter with revenue of US88.3 billion, which are figure most companies could only dream of raking in annually, let alone over just a short 3-month period. However, despite reaching an average selling price of US$796.42 for its iPhone range, Apple missed analysts expectations for iPhone sales. Despite the launch of the iPhone X, the most vaunted flagship iPhone in recent years, the Cupertino giant sold 77.3 million iPhones, actually 1.2 percent down on the same period last year.

In any other year, the launch of an all-new iPhone flagship would typically lead to record iPhone sales for the holiday quarter. Not this year, however, suggesting that rumors of Apple cutting iPhone X production due to weaker than expected demand were accurate. Unfortunately, Apple doesn’t break down the individual sales figures for the iPhone variants that it sells.

Criticism of the iPhone X included its sky-high starting price, its controversial notch and its “Face ID or nothing” approach to biometric security. Despite this, Apple boss Tim Cook tried to paint a rosy picture about the iPhone X, saying that its sales “…surpassed our expectations and has been our top-selling iPhone every week since it shipped in November.”


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Sanjiv Sathiah, 2018-02- 3 (Update: 2018-02- 5)