With fewer main promoting factors and given a consumer choice for the iPhone 8 Plus and iPhone X, Apple analyst Ming-Chi Kuo expects iPhone 8 production to see a 50-60 % sequential decline this quarter.
iPhone 8 Plus and iPhone X Popularity Increased
In his newest analysis observe for KGI Securities, obtained by MacRumors, Kuo stated the lower-than-expected iPhone 8 demand might lead to fewer orders for Apple provider Pegatron, which assembles the iPhone 8 in Taiwan.
Pegatron — iPhone 8 production to decline 50-60% QoQ in 1Q18F on lower-than-expected demand: With fewer major selling points and given a consumer preference for iPhone 8 Plus on a limited price gap, we expect iPhone 8 production orders to see 50-60% QoQ decline in 1Q18F, potentially shrinking Pegatron’s utilization rate. But considering new iPhone orders may become more diverse (compared with a single model of iPhone 8 in 2H17), and assuming the new models will come with more compelling features than iPhone 8, we are positive on Pegatron’s growth momentum in 2H18F.
Simply this week, analysis agency Canalys stated the iPhone 8 Plus outpaced the iPhone 8 final quarter with shipments of 6.3 million items versus 5.4 million items respectively. Canalys stated the iPhone 8 Plus is the primary Plus-sized iPhone to out-ship its smaller 4.7-inch sibling in a single quarter.
Apple does not disclose iPhone sales on a model-by-model foundation, however chief executive Tim Cook stated the iPhone 8 Plus has “gotten off to the fastest start of any Plus model,” which came as “a bit of a surprise” to the company.
Kuo stays constructive about iPhone X demand, and estimates production will rise 35-45 % this quarter in comparison with final quarter, which ought to assist to alleviate provide constraints heading into the vacation shoping season. The gadget nonetheless has a Three-Four week transport delay on-line, with restricted in-store availability.
Kuo stated Apple’s primary manufacturer Foxconn will convert its iPhone 8 Plus production lines into iPhone X lines in late 2017 to fulfill additional orders. Still, Apple is unlikely to achieve supply-demand balance until 2018.