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iPhone

Is the iPhone 8 already a flop?

By Don Reisinger Tom's Guide
Published | Updated
abf6483d-iPhone 8

(L-R) iPhone 8 Plus, iPhone X and iPhone 8 models are displayed during an Apple launch event in Cupertino, California, U.S. Sept. 12, 2017. (REUTERS/Stephen Lam)

Apple's iPhone 8 might have only hit store shelves a few weeks ago, but already there's some concern the smartphone could be facing some problems.

A study from analysts at KeyBanc Capital Markets says Apple's iPhone 7 models are actually outselling the iPhone 8. In a note to investors KeyBanc's John Vinh said that "a meaningful portion of customers are buying iPhone 7 in lieu of the iPhone 8." He attributed the buying decisions to the iPhone 8's "lack of significant enhancements."

However, Apple's iPhone 8 might also see its sales stymied by its iPhone X, a smartphone that will be launching next month and has prompted some customers to hold off on buying a new iPhone until it's available, the analyst said.

Apple announced the iPhone 8 and iPhone X at a press event last month. While the company did its best to pitch the iPhone 8 as a desirable option, featuring an enhanced glass design, superfast A11 Bionic processor, and new wireless charging, customers seem to be more interested in the iPhone X. Apple's iPhone X offers a boatload of enhancements, including an all-new design, the first OLED display from Apple, and a new facial-scanning feature called Face ID.

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Historically, iPhones have sold out rather quickly when offered for pre-order. Last month when the iPhone 8 was offered, however, many units were still available. There were also units readily available on its launch day. It was the first time Apple hasn't been hit with widespread sellouts of new handsets.

But perhaps it's not all Apple's fault. Vinh, whose comments were earlier reported on by Reuters, said that carriers have also been less willing to offer promotions on the iPhone 8 than they were on the iPhone 7. Customer concerns, coupled with pricing considerations, might be pushing people to the iPhone 7, which is still a fine option in today's market, and it's more affordable.

The big test for iPhone 8, however, might just be when iPhone X hits store shelves on Nov. 3. At that point, it'll need to compete with both the iPhone 7 and iPhone X.