Investors fret about iPhone X release date

By Barry Eitel

SAN FRANCISCO

Shares of Apple dipped Wednesday as investors worried about how consumers will receive its new flagship phone.

Apple stock ended the day at $159.65, down 0.75 percent from Tuesday, when the iPhone X, pronounced iPhone 10, and iPhone 8 were announced. It was the second straight day of sluggishness for the stock that began to tumble soon after the new phones were unveiled.

CEO Tim Cook called the iPhone X “the future of the smartphone”. The phone features no buttons, a screen that stretches from edge-to-edge and facial recognition software.

Early reviews are good but it appears much of investors’ trepidation is due to its release date. The iPhone X will not be available in stores until Nov. 3, when it will debut in more than 50 countries.

For the past 10 years, most iPhones were available in late September or early October. Analysts noted the late release date of the iPhone X could negatively affect sales in the usually bountiful fiscal quarter during the holidays.

Some market researchers such as KGI Securities said this week it appears the innovative technology needed for the iPhone X is causing delays in Apple’s supply chain.

Apple did not respond to an Anadolu Agecny’s request for comment about why the iPhone X will be released in November.

Apple also unveiled the iPhone 8 and iPhone 8 Plus, which are very similar to the iPhone 7, as well as new versions of the Apple Watch and Apple TV. Even though the iPhone 8 will be available in 27 countries Sept. 22, the other products have apparently not alleviated Wall Street’s worries about iPhone X sales.

With a starting price of $999, the iPhone X will also be the most expensive iPhone ever, another point of concern for investors.

“We were positively surprised by the Apple Watch’s functionality and the price increase on the iPhone 8 and 8 Plus but were disappointed by the lack of incremental functionality in the iPhone X to justify the $999 price point,” Andy Hargreaves, an analyst at KeyBlanc Capital Markets, said in a note.