KGI Securities Analyst Kuo Believes iPhone 8 Poor Weekend Sales Report ‘Overdone’ – Technewtips
KGI Securities analyst Ming-Chi Kuo says that poor opening weekend sales of iPhone 8 are “overdone,” with the market being excessively negative surrounding the handsets. He says that first weekend sales of the iPhone 8 were stable and that he believes there is going to be a 50:50 split in orders between the iPhone 8 and iPhone X.
Thus, he says that despite the 50 percent lower adoption rate for the iPhone 8 and iPhone 8 Plus when compared to the iPhone 6s/iPhone 7, the sales of Apple’s latest iPhones are on track.
Corroborating data from another analytics firm, Kuo says the iPhone 8 Plus was more popular among consumers and saw the highest first-week adoption for a Plus sized iPhone.
We note that production of the iPhone 8 versus 8 Plus in 3Q17F is roughly split down the middle of a total of 16-18mn units. This reflects Apple’s thinking that demand for these two models will be similar, at least in the early stages. In reality, according to Localytics, iPhone 8 Plus sales fared slightly better than those of the iPhone 8 during the first weekend, while the former’s shipping time was longer, according to Apple’s online store.
Kuo says in his note that most people only consider sales of the SIM-free unlocked iPhones while completely underestimating the volume of iPhones Apple ships through its carriers channels. However, with the iPhone X launch fast approaching, Kuo says the shipment momentum of iPhone 8 needs to be monitored closely.
Sales of iPhone 8 are bound to drop around the time the iPhone X is slated to go on pre-order and when it first hits the retail stores. But since the handset will be in short supply for at least the first few months of its availability, frustrated consumers would likely end up buying the iPhone 8 rather than playing the waiting game for weeks. Thus, while there might be a dip in iPhone 8 sales, it will only be temporary in nature.
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