Ahead of the iPhone X launch, many analysts and tech observers were of the mind that Apple’s next-gen iPhone would usher in supercycle of iPhone upgrades. And with good reason, the iPhone X marked the first major redesign to the iPhone form factor since the iPhone 6 release back in 2014. The reality, though, is that the iPhone X hasn’t exactly lived up to the hype, at least from a sales perspective.
Though Tim Cook recently mentioned that the iPhone X has been the company’s most popular iPhone model since its release last November, cumulative sales have reportedly been a tad below expectations. With this in mind, Goldman Sachs recently cut its estimate for overall iPhone sales during the current March quarter and the upcoming June quarter.
As detailed by CNBC, analysts at Goldman Sachs now anticipate that iPhone sales during the March quarter will check in at 53 million units. For the upcoming June quarter, Goldman Sachs is projecting iPhone sales to fall somewhere in the range of 40 million. As a point of reference, iPhone sales during the March 2017 quarter checked in at 50.7 million units while iPhone sales during the June 2017 quarter checked in at 41 million units.
The Wall Street analysts said that it has reduced its iPhone shipment forecast by 2.5 percent to 217.3 million units for Apple’s fiscal year which ends on September 30, 2018. It also cut its iPhone shipment expectations for fiscal 2019 and 2020 by 4 percent and 1.8 percent respectively.
The investment bank also revised downwards the rate at which it expects people to replace their devices, even in China. Despite declining replacement rates, Goldman said the number of people with iPhones will continue to grow and currently stands at 631 million units.
As to why the iPhone X hasn’t been selling as well as some were anticipating, a recent survey revealed that many prospective buyers found the $999 price tag a bit too high. On a related note, RBC Capital Markets analyst Amit Daryanani believes that Apple will adjust its pricing accordingly when it reveals its next-gen iPhone lineup later this year. Specifically, Daryanani anticipates that a second-gen iPhone X may retail for $899 while the rumored 6.1-inch iPhone with an edgeless LCD display will be priced in the $699 range.