KGI: iPhone X Shipping Estimates Improvement Is Not A Result Of Weak Demand, But Rather As Production Improving Rapidly

According to KGI’s Ming-Chi Kuo, he's out with a new investor note this morning touching on iPhone X demand and supply. As Kuo explains in his note that while some believe the iPhone X’s quickly improving supply is due to low demand, he attributes it to production improvements with demand remaining strong.

According to the analyst, who frequently shares accurate information from Apple's supply chain, says iPhone X production issues "have been well addressed" in recent weeks, with Foxconn's production now at 450,000-550,000 units per day compared to just 50K-150K units a month or two ago as Apple geared up to launch the device.

The report pointed out that the two major bottlenecks that have caused the iPhone X supply have been largely resolved. First, Career quickly made up for the lost time after Murata was unable to deliver the LTE antenna components as originally planned. Second, LG and Sharp also improved the yield of dot projector modules in TrueDepth cameras.

(1) Hon Hai’s daily shipments of iPhone X have climbed to 450-550k units, up from 50-150k units 1-2 months ago; (2) shipments of Career’s LCP LTE antenna will likely grow 100% MoM in both November and December; and (3) production yield of Dot projection module, made by LG Innotek (KR) and Sharp (JP), has moved quickly above 80-90% or higher from below 60% 1-2 months ago

Due to improved production, Kuo believes that fourth quarter of iPhone X shipments may be 10% to 20% higher than his previous estimate, some of which are expected to be delivered by the end of the quarter. He predicts that this acceleration means that iPhone X shipments in the first quarter of 2018 will be flat or slightly lower than in the Q4.

Via 9to5Mac And MacRumors, Image Credit CNET