The iPhone X may prove even more successful than previously thought, and this is likely to have an impact on the iPhone 8 and iPhone 8 Plus, claims KGI Securities analyst Ming-Chi Kuo.
In a note issued to clients over the weekend, Kuo said that Apple is likely to sell between 22 and 24 million iPhone X handsets over the holiday quarter, with production during the same period likely to be in the region of 25 to 27 million units.
What increased demand means for the iPhone 8, however, is that production is likely to decline by 50 to 60 percent, compared to the holiday quarter. This is due to demand being “lower than expected.”
As a result, Kuo thinks Apple manufacturer Foxconn will switch its iPhone 8 Plus production lines to an iPhone X line sometime in late 2017 to fulfil the extra orders Apple will place.
Not commenting on the split
This isn’t the first time analysts have commented on iPhone 8 sales. Early reports suggested that the iPhone 8 and iPhone 8 Plus experienced disappointing first weekend sales, although Kuo himself later criticized these reports as being “excessively negative.”
Kuo also originally suggested that Apple was predicting a roughly even split between the iPhone X and the iPhone 8 and 8 Plus, although it seems that Apple may now have overestimated iPhone 8 demand.
Right from the start, it was apparent that the iPhone 8 may experience some challenges in the marketplace — particularly if the iPhone X was a hit. Although the iPhone 8 experienced middling–to-positive reviews, it struggled to define itself as an essential purchase between the cheaper iPhone 7 and far more exciting iPhone X.
Apple is extremely unlikely to release a breakdown of sales of the iPhone X vs. iPhone 8, just as it has refused to reveal the exact split between 4.7 and 5.5-inch iPhones for the past few years. We guess the proof will ultimately be in whether Apple repeats the experiment with the two product lines next year.
Have you bought an iPhone 8 or 8 Plus this year? What was your reason for doing so? Let us know in the comments below.