As the first iPhone 8 and iPhone 8 Plus orders began shipping out to customers today ahead of officially launch date, which is on Friday, September 22, demand for Apple's high-end flagship iPhone X is "very likely" to cannibalize iPhone 8 pre-orders, predicts KGI Securities analyst Ming-Chi Kuo in a note sent out to investors this morning.
Traditionally, iPhone pre-orders well sold out in September due to high demand, but this year, perhaps because of iPhone X's gigantic upgrade leading customer awaiting the device to came out, causing many models of the iPhone 8 and the iPhone 8 Plus that available for launch day delivery through the weekend, and continue to remain readily available for launch day pickup in Apple retail stores.
While Kuo also notes that the iPhone market mammoths the Apple Watch market, investors should look to watch suppliers and not phone suppliers for opportunity before the iPhone X debuts.
Via MacRumors And 9to5Mac, Image Via 9to5Mac
Traditionally, iPhone pre-orders well sold out in September due to high demand, but this year, perhaps because of iPhone X's gigantic upgrade leading customer awaiting the device to came out, causing many models of the iPhone 8 and the iPhone 8 Plus that available for launch day delivery through the weekend, and continue to remain readily available for launch day pickup in Apple retail stores.
It's not surprising, that KGI is "positive on demand" for iPhone X and believes the market will be conservative on iPhone 8 and its suppliers in the near term. High demand for iPhone X, which does not launch until November, could become an impact for Apple's fourth-quarter earnings results.
As for the Apple Watch Series 3, Kuo says demand for the LTE model was "significantly stronger" than expected, perhaps due to the "low premium of $70" over the non-LTE version of the watch. He also believes pre-order weighting of the GPS + Cellular version of the Apple Watch to be 80 to 90 percent over the non-LTE model, though that prediction is questionable given the limited number of countries where the LTE model was available for purchase.
Historically, it takes 3-6 weeks or more to ship new iPhone models after they are available for preorder, due to initial tight supply and robust demand. However, our latest review indicates it will take less than 1-2 weeks for the iPhone 8. We believe this is because there is a strong likelihood that iPhone X demand will cannibalize iPhone 8 pre-orders
As for the Apple Watch Series 3, Kuo says demand for the LTE model was "significantly stronger" than expected, perhaps due to the "low premium of $70" over the non-LTE version of the watch. He also believes pre-order weighting of the GPS + Cellular version of the Apple Watch to be 80 to 90 percent over the non-LTE model, though that prediction is questionable given the limited number of countries where the LTE model was available for purchase.
Before the media event, we forecasted the production weighting of the GPS + Cellular version would be 30-40%. However, the pre-order website shows shipments of this version are taking much longer than those of the GPS version (3-4 weeks, from shipments launch day of September 22). We estimate the preorder weighting of the GPS + Cellular version is 80-90%.
While Kuo also notes that the iPhone market mammoths the Apple Watch market, investors should look to watch suppliers and not phone suppliers for opportunity before the iPhone X debuts.
Via MacRumors And 9to5Mac, Image Via 9to5Mac
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