Apple is slipping after reports of iPhone 8 production cuts (AAPL)

Sad Apple CEO TIm Cook

Shares of Apple are down 1.65% to $157.12 in early trading on Thursday on reports that the company has cut orders linked to its new iPhone 8.

Apple has cut production orders linked to the iPhone 8 by more than 50% for the rest of the year, according to Bloomberg which cites the Economic Daily News, a Taipei-based publication. The reports do not specify details of the production cuts nor the source of the information.

The iPhone 8 was seen as the less impressive of several new iPhone models Apple announced earlier this year. The iPhone X, with its edge-to-edge screen and new form factor, is the new flagship phone from the company. Apple decided to stagger the release of the new iPhones, releasing the iPhone 8 before the iPhone X, and it seems as if demand for the 8 is significantly smaller than expected.

Lines on the day of the iPhone 8 release in September were much smaller than expected, which many analysts took as a hint of lower demand for the new phone. Many investors were expecting a supercycle of upgrades to the new iPhone models, but the mix of models is yet unclear.

Apple is reportedly having supplier issues with the new parts required for the iPhone X. The company is having trouble sourcing the Glass panels, Bloomberg reports.

Apple is up 37.55% this year.