Apple’s Value Dips $46.4 Billion Amid Weak iPhone X Demand

Amid the spate of recent reports suggesting iPhone X demand has tapered off, a new Wall Street Journal report not only appears to corroborate much of what we already know, but offers up a bit of additional insight into how badly Apple has been affected from a financial standpoint thus far.

Since the barrage of lackluster sales and production cut reports began circulating earlier this month, Apple’s stock price (NASDAQ: AAPL) has fallen by at least 5.1 percent — logging its greatest, single-day dip of 2.1 percentage points last Friday, WSJ noted.

Mathematically speaking, the combination of its losses since January 22 have brought down Apple’s overall value by a whopping $46.4 billion.

The report additionally appears to echo much of what we’ve heard  so far: that Apple is in fact planning to reduce iPhone X production from 40 million units to around 20 million during the current quarter, according to “one source with knowledge of the company’s production goals.”

Lamenting how “They always do this when things aren’t selling well,” the source further confirmed that Apple has reduced orders for several of iPhone X’s most crucial components by 60%.

“It’s a real headache,” they added.

KGI Securities heavyweight, Ming-Chi Kuo, was first to publish a research note indicating Apple would slash iPhone X production this quarter. In the weeks since, a number of the industry’s leading analysts have offered similar, dismal reports.

Out with the Old..

Expectations for the iPhone X were so high, that for some time prior to its launch, analyst reports were pointing to an ominous-sounding “Supercycle” of iPhone upgrades — which never quite materialized like they predicted.

While sales of its iPhone 8 and iPhone 8 Plus have been strong in select markets, beyond its initial, pre-order and launch day rush, its iPhone X has for the most part failed to catch on with mainstream consumers in large part due to its sheerly exorbitant cost of ownership.

A base-model iPhone X will run you $999 (plus tax). But as we’ve noted before, the buy-in price can easily skyrocket when you factor in the cost of compatible accessories, protection, and any supplemental warranty coverage.

In with the New?

iPhone X sales and production may be tapering off now, but what’s still uncertain is how these forces will continue to affect Apple’s financial position.

While iPhone represents a large part of Apple’s annual revenue stream, the company markets and sells a variety of products in addition to it. And so, while we’ll have to wait until the company’s earnings call tomorrow afternoon to learn more, it’s possible that products like the iPhone 8, iPhone 7, iPad and more will help balance the scales in Apple’s favor.

Meanwhile, in a separate and more recent note, Ming-Chi Kuo asserted that Apple’s longer-term plans involve completely discontinuing the iPhone X as we know it — although a similar model boasting next-generation components is expected to take its place in Apple’s iPhone lineup this fall.