According to Business Insider, the debut quarter for the $999 iPhone X will be closely scrutinized by investors looking for a read on Apple's prospects in 2018. The success or failure of this pricey, ultra-premium new phone will inform Apple's iPhone strategy going forward.
As it is, investors have already been spooked by a steady stream of anonymously-sourced news reports suggesting soft demand for the components that go into the new iPhone.
"The Street has gone into 'full panic mode' as supply chain checks out of Asia indicate that March iPhone shipments are trending below expectations," writes GBH analyst Dan Ives in a research note on Friday.
While Ives believes Apple will notch solid results in the December quarter, driven by stronger-than-expected iPhone shipments and high average selling prices, he says Apple's guidance will be what really moves the stock.
Wall Street estimates currently forecast that Apple will generate roughly $68 billion in sales in the first three months of 2018 and ship about 62 million iPhone units. But with every news story about weakening demand for the iPhone X, fears are "running rampant on the Street that Apple will guide significantly below expectations for this upcoming quarter," Ives writes.
So far those worries have pushed Apple's stock down about 5% from its recent high of $180 earlier this month. And given that Apple's stock is still trading near its 52-week high, there's plenty more room to fall if the company confirms people's fears with a weaker-than-expected quarter.
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