Apple shares skid on report of iPhone X production cut

Apple Inc will halve its iPhone X production target for the first quarter to around 20 million units, Nikkei reported yesterday, sending its shares down more than 2 percent in early trading.

The report added to growing concerns around weak sales of the $999 phone, making investors jittery about the company’s financial outlook for the year when it reports first-quarter results on Thursday.

“Apple earnings should handily beat December quarter expectations, but March guidance could moderately disappoint,” UBS analysts said. “We don’t think F18 will be a ‘supercycle’ year”.

The production cut was prompted by slower-than-expected sales in the holiday shopping season in Europe, the United States and China, the Japanese newspaper reported.

Analysts have lowered their estimates for iPhone X shipments in the past few weeks, citing high price of the device among other factors, with at least three downgrading their rating on the stock.