Apple’s stock sagged today as some analysts lowered their iPhone X projections for the first quarter, citing weaker-than-expected demand for the $1,000 device during the holiday shopping season.

Chinese broker Sinolink Securities forecast shipments might be as low as 35 million — about 10 million fewer than previously estimated, Reuters reported. Analyst Zhang Bin wrote that after an initial wave of consumer enthusiasm, the device’s high price might be leading to less demand.

JL Warren Capital in Chicago similarly forecast a drop in shipments, to 25 million units, citing reduced orders at some of Apple’s suppliers. “Bad news here is that highly publicized and promoted X did not boost the global demand for iPhone X,” Warren Capital wrote.

This news caused Apple’s stock to close down $4.44, or 2.5%, to $170.57 on Tuesday. Stock for Apple’s suppliers, including Genius Electronic Optical, also took a hit.

Some criticized the hefty price tag for Apple’s 10th anniversary iPhone, which is the first to break the $1,000 barrier. But CEO Tim Cook has defended the pricing, saying the iPhone X is packed with technological advances, including facial recognition technology that enables the phone to unlock with a glance.

At least initially, demand for Apple’s shiny new object looked robust.

“The iPhone X orders are very strong for both direct customers and channel partners, which as you know are lots of carriers throughout the world,” Cook said during an analyst call. “As of a few minutes ago, the first sales started in Australia. I’m told we had several hundred people waiting at the stores in Sydney, and I’m getting similar reports from stores across that region.”