Technology firm Apple is rocking to the core with the realisation that people may be falling out of love with the iPhone.
The multinational corporation has sold hundreds of millions of the ubiquitous smart phones in the decade since June 2007, when the first iPhone was launched.
iPhone 8 sales were subdued even though pre-orders for the iPhone X were better than expected reportedly knocking earnings and profits for the third quarter of the year.
The iPhone X is the tech giant’s flagship product, but missed the projected launch date due to manufacturing problems and has only just hit the streets.
The £1,149 price tag has discouraged many buyers.
iPhone 8 was in the shops at the end of September, but the churn rate has been disconcerting for Apple.
The last major release – iPhone 7 – saw 43% of iPhone users discard their old handsets in favour of the new. This time round, Consumer Intelligence Research Partners has seen only 16% of iPhone buyers do the same.
Analysts cite little change in design and a few technical upgrades were not enough to persuade Apple fans to part with their cash.
US cell phone network AT&T reports subdued interest in upgrades to iPhone 8.
Either Apple’s customers are waiting for the breathtakingly expensive iPhone X or have decided upgrading technology every year to fill the corporation’s coffers with their hard-earned cash to look cool is no longer worthwhile.
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Problems with the iPhone X 3D sensor have set the production line back by eight to 10 weeks and may take some time to catch up.
“The weakness in the iPhone 8 probably is more due to strong demand for the X than a disappointing cycle,” investment bank UBS said.
Apple’s share price is sitting close to the peak, but current performance depends on sales in the last quarter, which is traditionally strong for the company. Anything short of surging sales and profits will be considered disappointing.
The good news for Apple bosses is technology shares are doing well on Wall Street, with Facebook. Google parent Alphabet, Microsoft and Amazon values soaring even though they have vastly different business models.