Skip to main content

Market Overview

Rosenblatt Suggests Apple iPhone 8 Preorders Are Weak; Users Holding Out For iPhone X?

Rosenblatt Suggests Apple iPhone 8 Preorders Are Weak; Users Holding Out For iPhone X?

Apple Inc. (NASDAQ: AAPL)'s stock lost nearly 3 percent Wednesday morning, partly due to a cautionary report from analysts at Rosenblatt Securities.

Based on initial research, it appears iPhone 8 preorders are "substantially lower" than prior iPhone 7 and iPhone 6 levels, analyst Jun Zhang commented in the report. While it may hold true that many would be customers are waiting for the high-end iPhone X model, the fact remains that current preorder levels "could bring some headwinds."

Within China there were approximately 1.5 million iPhone 8 preorders observed on in the first three days, which is notably short of the 3.5 million iPhone 7 orders that were observed in its first three days, the analyst said. On top of that, China Mobile's iPhone 8 preorders totaled around 1 million units compared to 2.5 million units for the iPhone 7 and 3.5 million units for the iPhone 6.

In the U.S., initial feedback similarly suggests iPhone 8 preorder volume is below both the iPhone 7 and iPhone 6.

Based on concerning initial feedback, Zhang said Apple may need to cut its iPhone production plan of around 70 million iPhone 8 and 8 Plus units for the bottom half of 2017. There are some concerns that the iPhone X production ramp won't be able to meet demand in both the December and March quarters.

Zhang maintains a Neutral rating on Apple's stock with an unchanged $150 price target, which implies downside from Wednesday's opening price of $157.90.

Related Links:

For Apple, Price Increases Historically Help Demand, Rather Than Hinder It

7 Takeaways From Apple Investor Meetings Suggest Concern Over Face ID, iPhone X Pricing

Latest Ratings for AAPL

Apr 2021Morgan StanleyMaintainsOverweight
Apr 2021Morgan StanleyMaintainsOverweight
Mar 2021UBSUpgradesNeutralBuy

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings


Related Articles (AAPL)

View Comments and Join the Discussion!

Posted-In: iPhone iPhone 8 iPhone X Jun ZhangAnalyst Color Top Stories Analyst Ratings Tech Best of Benzinga

Latest Ratings

VZIOWells FargoInitiates Coverage On31.0
OMWells FargoInitiates Coverage On63.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at