Rumor: iPhone 8 Production Slashed in Half On Weak Demand

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So, what is causing the slow intake of the iPhone 8 among the American people, a market where the iPhone has generally performed much better than in other markets across the globe?

Shares of Apple on Nasdaq were trading down 2.45 percent to $155.77 as of 3pm BST Thursday afternoon.

But the debate - and hints from some analysts and a Taiwan media report of a cut in iPhone 8 production - was enough to push Apple shares down 2.8 percent by lunchtime in NY.

Vinh wrote in his research report that "many respondents indicated that a meaningful portion of customers is buying iPhone 7 in lieu of the new iPhone 8, given the lack of significant enhancements in the new phone".

That could mean that shipment numbers could total just five to six million units per month in November and December, well below the estimated demand for 50 million units of the other new release, the iPhone X, when preorders begin on October 27. "Apple's lower iPhone 8 pricing should limit the impact, but it remains a risk".

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The circumstances of the launch four years ago were different - the 5C was more clearly marketed as being an inferior version of the 5S, rather than the 8 and X's confusing numerical relationship - but Apple was able to recover and hold onto its place as the most valuable company in the world.

If recent reports are to be believed, the iPhone 8 isn't selling as well as many would have expected. The iPhone X, which goes on sale November 8, features an all-new design with an edge-to-edge OLED screen and revolutionary facial recognition technology. Meanwhile, an optimistic report this week from research firm Gartner said the iPhone X will help increase smartphone sales in 2018.

Beijing/Taipei - Suppliers to Apple fell after a newspaper report that orders for iPhone 8 models had been cut for the rest of the year amid a lukewarm reception. "At $999, the iPhone X is priced to be a natural increment beyond the iPhone 8 Plus". Case says that his checks indicate "final production of iPhone X has not yet begun".

"Why are there two distinct models in Apple's iPhone portfolio? A new price point is also implemented to reflect the flagship nature of iPhone X".