Ming-Chi Kuo: Production Of iPhone 8 Said To Decline 50-60 Percent, Given Strong Demand Of iPhone X And iPhone 8 Plus

KGI analyst Ming-Chi Kuo this morning is out with a new investor note touching on iPhone X demand through the 2017 holiday quarter. Kuo notes the negative impact the iPhone X will have on demand for the iPhone 8, which he anticipates that iPhone 8 production to see a 50-60 percent sequential decline this quarter.

The analyst explains that iPhone X production will hit between 25 million and 27 million units during the holiday quarter, with sell through between 22 million and 24 million. As for the first quarter of 2018, Kuo expects production to grow 35-45 percent quarter-on-quarter. After all, Kuo sees a strong iPhone X demand continuing into 2018.

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.

Lastly, He says that the iPhone 8 Plus, on the other hand, is selling slightly above initial estimates. This, in part, KGI explains, is part of what is cannibalizing demand for the 4.7-inch iPhone 8. Of note, Kuo also predicts that Foxconn will convert its iPhone 8 Plus production lines to iPhone X line sometime in late Q4 to help fulfill additional orders.

Via MacRumors And 9to5Mac, Image Via PCMag