Apple, Inc. (NASDAQ: AAPL) shares fell over 2.2 percent Thursday morning at open on speculations of iPhone 8 order cuts and China cutting off the LTE cellular feature that comes with the new Apple Watch series.
According to Reuters, there was speculations over the low demands for the iPhone 8, which can be attributable to upcoming iPhone X launch on November 3.
KeyBanc Capital Markets analyst, John Vinh, reported this week in survey that that carrier stores were selling the previous iPhone 7 model more than the new iPhone 8.
According to a Taiwan-based newspaper, Economic Times, some analysts cited a report saying a source mentioned about a 50 percent cut in orders for the iPhone 8.
Jun Zhang, Rosenblatt Securities analyst, said he believes that Apple will cut the down iPhone 8 production and shift the expenses into the iPhone X as the company should expect to sell more iPhone X’s over the 8.
Shares were also impacted by China’s cut off of the cellular service on the new Apple Watch, reported by the Wall Street Journal.
For the first time ever, Apple Watch now offered its users cellular service. Users would be able to make phone calls or send a text via the watch instead of their iPhone, but China cut that feature off.
The Chinese government did not give an explanation to the sudden cut off. Analysts are saying that cut off likely came from the Chinese government security concerns to do with tracking users of the device because the watch uses different technology than standard mobile phones. The new Apple Watch contains a new SIM card, called embedded SIM or eSIM. The SIM card is embedded by Apple, not the mobile carriers. This causes poses a problem to user identification system.
“We were informed by China Unicom that the new cellular feature on the Apple Watch Series 3 has been suspended,” Apple said in a statement.
The Chinese regulator, the Ministry of Industry and Information Technology, didn’t respond to requests for comment.