Apple iPhone X, the revolutionary iPhone redesign sold out within 10 minutes of its pre-orders. Such was the high demand, that shipping time extended to more than 5 weeks for some. Due to such “off the charts” demand of the Apple’s 10th Anniversary iPhone, those suppliers which provide components to Apple, just saw their stock price going up in a surge.
With around a 6.5 percent rise in the stock of the Anglo-German chipmaker Dialog Semiconductor, it topped the Europe’s Stoxx 600 index, just after the open of European Trade Monday. It was not the only company which enjoyed a tremendous surge in stock prices, but there was a similar contender by the name of STMicroelectronics.
The Franco-Italian chipmaker witnessed a surge of more than 3.5 percent in its early trade. Moreover, due to a widespread belief that the iPhone X employed this company to provide sensors in the recent iPhones, there was an increased demand for their new sensors as well.
Not only this but there was also Austria Microsystems (AMS) which rose up to nearly 3 percent in the morning trade indicating a good stock growth. Tech-giants like Apple and Samsung have been known to make use of the optical sensors provided by this company to control the brightness and colors of the screen.
The Asian companies weren’t left behind either. The company which assembles your iPhone, Foxconn, and another chip-maker, the Taiwan Semiconductor Manufacturing Company were able to grab more investor attention too, with their stock prices too seeing a substantial increase.
Not only did the suppliers of components benefit from this phenomenal demand of the iPhone X, but obviously Apple’s shares itself benefited a lot too. The Apple’s shares itself opened around 1.6 percent higher, at the U.S open Monday shares.
There were speculations that a $999 price tag would actually go the other way around, and that iPhone X would be unable to attract customer attention, because of the hefty price tag, but who knew the opposite would happen. Therefore on Friday, Apple in a statement sought to make sure the industry watches and shareholders that even with $999 price tag, people were still going to buy the new and revolutionary iPhone X.
According to an Apple spokeswoman in a statement, “We can see from the initial response, customer demand is off the charts.”
Bear in mind, that is still important for iPhone X to succeed onwards. Since the iPhone 8 has seen rather slow sales, therefore all is heftily relied on the iPhone X to succeed. Therefore, a tech analyst, Gene Munster has rightly commented that “Apple’s success over the next year will depend heavily on how the iPhone X fares.”
According to him, people would still upgrade to the new phone utilizing the easy installment options offered by Apple and carriers, which would minimize the upfront extra cost. Due to this, his own firm, the Loop Ventures has currently raised its speculation on the iPhone average selling price to be around $740 for the near coming fiscal year 2018.