Apple Inc. (AAPL - Get Report) stock fell 2.5% midday Wednesday after Rosenblatt analyst Jun Zhang said preorder figures for the new iPhone 8 show demand for the handheld could be substantially lower than previous models, according to StreetInsider.
"We understand many customers could be waiting for the iPhone X, but we are concerned iPhone 8/8 Plus sell-through could bring some headwinds," Zhang wrote in a Wednesday note.
Analysts concluded there were about 1.5 million iPhone 8 preorders on JD.com (JD - Get Report) in the first three days the device was available for ordering. The iPhone 7 had 3.5 million preorders on JD.com in the same period during its release. On China Mobile (CHL) , there were around 1 million iPhone 8 models preordered in the first three days, compared to 2.5 million iPhone 7 models and 3.5 million iPhone 6 models.
A similar slowdown in preorders for the new model is likely to happen in U.S. markets as well, analysts added, given initial feedback.
The poor performance comes the same day Apple admitted its new Apple Watch Series 3, which is set to ship Friday, Sept. 22, has connectivity problems. The Series 3's biggest selling point was that it's the first of its kind that has built-in cellular capabilities, meaning it doesn't have to be tethered electronically to a cellphone to operate on the network.
But a reviewer from The Verge said the watch appeared to connect to unknown Wi-Fi networks instead of operating on LTE when out of range from the user's phone as advertised.
Apple released a statement shortly after, acknowledging that when the Apple Watch Series 3 "joins unauthenticated Wi-Fi networks without connectivity, it may at times prevent the watch from using cellular."
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