Recent reports claim that iPhone X production has slowed down due to declining demand, but according to an analyst, Apple is not facing any such problem.

Apple has found the solution to the iPhone X supply shortage, with next-day delivery and same-day pickup options now available for most customers in the United States. Many analysts believe that supply is starting to overtake demand, but that might not necessarily mean trouble for Apple's premium smartphone.

Apple Shares Tumble After Lower iPhone X Demand Predictions

Sinolink Securities analyst Zhang Bin recently claimed that iPhone X shipments in the first quarter of 2018 could be as low as 35 million compared to the previous estimate of 45 million. Zhang claims that the $1,000 price tag of the iPhone X will pull down demand next year.

New York-based JL Warren Capital LLC, meanwhile, predicts iPhone X shipments to fall down further to 25 million in the first three months of 2018, pointing to reduced orders by Apple from several of its suppliers.

Taiwanese publication Economic Daily News then reported that Apple reduced its iPhone X sales forecast for the first quarter of 2018 from 50 million to 30 million.

These predictions and reports caused Apple's shares to tumble by 2.5 percent on Dec. 26. However, according to Rosenblatt Securities analyst Jun Zhang, they are simply not true.

Demand Declines For iPhone 8, Not iPhone X

According to Rosenblatt's Zhang, iPhone X production remains on schedule, with no evidence suggesting that there will be less units made after the holiday season.

Zhang believes that the reports have gotten it wrong, particularly naming Taiwanese media as possibly confusing production cuts for the iPhone 8 and iPhone 8 Plus for lower iPhone X order. Zhang noted that it was the production of iPhone 8 models that instead received cuts, while iPhone X production ramped up.

Zhang, however, claims that suppliers for iPhone X components will not see an increase in orders from Apple, with a 25 percent quarter-on-quarter decline coming in spring. However, the deceased orders are due to seasonal trends and not lower market interest in the iPhone X.

iPhone X sales are particularly strong in China, Zhang said, with the $1,000 smartphone even selling better than the cheaper iPhone 8 and iPhone 8 Plus. In addition, the more expensive 256 GB model has proven to be more popular than the 64 GB model.

As of this moment, only Apple knows the exact sales figures of the iPhone X and whether iPhone X demand is slowing down or remaining as high as ever. Once Apple releases its earnings for the holiday quarter in January, we will all see how the iPhone X has performed so far.

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