Apple's rollout of two major iPhone models this year may cause short-term issues for the company, according to one Wall Street firm.
Citi Research lowered its earnings and sales estimates for Apple's September quarter, predicting lower-than-expected demand for the iPhone 8 will cause the company to miss the Wall Street consensus.
"We are reducing our F4Q17 (Sept) to reflect more modest iPhone 8 and 8 Plus demand. Checks in US/Europe indicated similar demand patterns to those observed in Asia and Australia … i.e. modest crowds but definitely thinner than in the past while ship times for the devices ordered online were also quicker," analyst Jim Suva wrote in a note to clients Monday.
"We are not surprised that current ship times are quicker and lines shorter than prior launches, as we believe users will wait to compare to iPhone X before making a final purchase."
The iPhone X will be available Nov. 3 at a base model price of $999, while the iPhone 8 launched last week.
Suva reiterated his buy rating and his $170 price target on Apple shares, which is 12 percent higher than Friday's close.