Apple may cancel iPhone X due to low sales

The latest Apple leak has revealed the firm could cancel the iPhone X.

In a new report, an analyst says the new model's disappointing sales could lead to the phone being cancelled - with production stopping as soon as this winter.

This could be the first time Apple has cancelled a phone model since the iPhone 5C in 2014.

Experts believe the lack of interest in the phone is largely due to the notch, which many potential Chinese customers believe removes too much space on the screen.

Apple plans to ship around 18 million of the iPhone X in the first quarter of 2018, according to Apple KGI security analyst Ming-Chi Kuo.

He predicts the iPhone X could be 'end of life' as soon as this winter, rather than being kept on as a cheaper option for the following year.

According to the report seen by Apple Insider, Chinese interest in the phone has been lower as consumers believe there is less usable space than on the iPhone 8 Plus.

Shortly after the release of the launch of the iPhone X across Australasia, Apple sent out a statement saying that demand for the phone was "off the charts" in response to early concerns the phone wouldn't be as popular as previous models.

In New Zealand, there were also long waiting times for the phone, with customers receiving delivery as long as six weeks after ordering the product.

Kuo believes Apple will move to mitigate concerns about the unusable screen area by debuting a redesigned 'iPhone X Plus' model.

The iPhone 6 and 7 have been more popular than expected meaning the firm remains 'positive on Apple [and] the iPhone supply chain', the report said.

Kuo also believes there will be a modest 5 per cent growth in overall sales during the first half of 2018.

However, sales in the iPhone X have not been as promising.

Experts say the high price of the iPhone X – Apple's most expensive handset yet – and its 'lack of interesting innovations' could deter many buyers.

According to Sinolink Securities analyst Zhang Bin, shipments could be as low as 35 million in the first quarter of this year – roughly 10 million less than previously estimated.

Some analysts have also flagged disappointing demand.

US-based JL Warren Capital is predicting shipments of just 25 million units.

Sinolink said it expects the model's price would dampen consumer enthusiasm for the product, adding that slow production rates could also hinder sales.

During a trip to China last month Apple CEO Tim Cook said he 'couldn't be happier' with the demand for the iPhone X in the country.

Apple suppliers that were most hit included Genius Electronic Optical which dropped 2.4 per cent on Tuesday to take its losses this week to 11.4 per cent.

There were only 4.97 million Weibo posts mentioning the iPhone X so far in December compared to over 11 million for the iPhone 6 in the equivalent period in 2014, the analysis showed.