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Analysts Reduce iPhone X Q1 Sales Forecast, ‘Notch’ To Blame

KGI has further dropped its first-quarter sales estimate for the iPhone X, citing weaker than expected demand, as some consumers express their distaste for the device’s “notch” design.

The firm has provided a revised estimate of 18 million iPhone X shipments for Q1 2018, down from its original forecast of 20 million – 30 million.

KGI claims that many analysts hoped Chinese-based demand would make up sales numbers, however, recent reports reveal many local residents did not approve of the device’s “notch” design.

Many Chinese users felt the iPhone X’s “notch” did not offer as much usable screen as a traditional 5.5-inch display. Longer than expected replacement cycles are also cited as a reason for decreased Chinese-based demand. Recent reports reveal that both Huawei and Oppo are also forecasting lower sales, because of longer replacement cycles in China.

Some users are resorting to external apps, ‘notch removers‘, to remove the design feature from their iPhone X.

[Source: Axiem Systems]

KGI also forecasts that 13 million iPhone X units will sell in Q2 2018, with sales of the iPhone 7 and iPhone 6s tipped to remain steady.

As such, the firm forecasts that Apple will witness under 5% sales growth for the first half of 2018.

KGI re-asserts that Apple will release three new iPhones this year; a 6.1-inch LCD model, 6.5-inch OLED version, and an upgraded iPhone X.

Interestingly, KGI’s latest report predicts that Apple could cease selling its current iPhone X as early as “mid 2018”.

Should this prediction be true, Apple will have reportedly sold 62 million iPhone X units, which is notably lower than KGI’s former forecast of 80 million.

Apple isn’t the only smartphone brand to sell lower than expected units of its latest model – the overall smartphone industry is reporting lower sales, attributed to many consumers holding onto older phones longer.

The Calfifornian-based tech giant is scheduled to report its Q1FY18 earnings results on February 1st, 2018.

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