Apple faces profit hit from slow iPhone 8 sales and delays to iPhone X

The iPhone 8 came out in September but sales are believed to have been muted
The iPhone 8 came out in September but sales are believed to have been muted
James Titcomb
29 OCTOBER 2017 • 9:00 AM
Delays to Apple’s flagship iPhone will weigh on the tech giant’s profits this week amid weak demand for its second-rank new handset.

The iPhone X features an overhauled design and costs up to £1,149 but does not go on sale until Friday in limited supply, after Apple faced manufacturing problems.

The cheaper iPhone 8 hit shops on schedule in September and its first few days on sale will be included in Apple’s quarterly report on Thursday.

Analysts and mobile industry sources report slow sales for the smartphone. Its design is the same as its predecessor, with a handful of technical upgrades, and some Apple fans are thought to be awaiting the arrival of the top-of-the-range iPhone X.

Market research suggests demand for the iPhone has been lower than for previous new models. Only 16pc of US iPhone buyers in the last quarter opted for the iPhone 8, according to Consumer Intelligence Research Partners, compared to 43pc who bought the ­iPhone 7 in the same period a year ago.

Last week, the mobile network AT&T reported subdued demand for upgrades. UBS expects iPhone sales to be around 45m in the quarter, flat on last year, although it believes revenues and profits will grow, helped by rising iPad sales and demand for more expensive plus-sized iPhones.