Previewed at WWDC, launching in the fall.
iPhone 8 Production Said to Drop Significantly Given Popularity of iPhone 8 Plus and iPhone X
With fewer major selling points and given a consumer preference for the iPhone 8 Plus and iPhone X, Apple analyst Ming-Chi Kuo expects iPhone 8 production to see a 50-60 percent sequential decline this quarter.
In his latest research note for KGI Securities, obtained by MacRumors, Kuo said the lower-than-expected iPhone 8 demand could result in fewer orders for Apple supplier Pegatron, which assembles the iPhone 8 in Taiwan.
Apple doesn't disclose iPhone sales on a model-by-model basis, but chief executive Tim Cook said 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 remains positive about iPhone X demand, and estimates production will rise 35-45 percent this quarter compared to last quarter, which should help to alleviate supply constraints heading into the holiday shopping season. The device still has a 3-4 week shipping delay online, with limited in-store availability.
Kuo said 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.
In his latest research note for KGI Securities, obtained by MacRumors, Kuo said the lower-than-expected iPhone 8 demand could result in fewer orders for Apple supplier 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.Just this week, research firm Canalys said the iPhone 8 Plus outpaced the iPhone 8 last quarter with shipments of 6.3 million units versus 5.4 million units respectively. Canalys said the iPhone 8 Plus is the first Plus-sized iPhone to out-ship its smaller 4.7-inch sibling in a single quarter.
Apple doesn't disclose iPhone sales on a model-by-model basis, but chief executive Tim Cook said 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 remains positive about iPhone X demand, and estimates production will rise 35-45 percent this quarter compared to last quarter, which should help to alleviate supply constraints heading into the holiday shopping season. The device still has a 3-4 week shipping delay online, with limited in-store availability.
Kuo said 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.
Tags: KGI Securities, Ming-Chi Kuo
Buyer's Guide: iPhone 8 (Caution), iPhone X (Caution)
[ 335 comments ]
Top Rated Comments
(View all)
9 months ago
Back to having one model only. One Size, One Storage, One Price.
Back to Steve Jobs' Simplification. The reality is the pricing than options withholding people, 2nd-hand or older models are bringing transparency to the very fact.
Bring back the 17" MacBook, price it same as the smaller screen sizes, than look at the response. iPad Air & iPad Pro-Pra-Pre-Pru is illogical nonsense for profitary greed. In addition, just have one storage tier but of maximum capacity affordable by the technological limitations of the time, ex- the Classic iPod is classic for a reason.
Back to Steve Jobs' Simplification. The reality is the pricing than options withholding people, 2nd-hand or older models are bringing transparency to the very fact.
Bring back the 17" MacBook, price it same as the smaller screen sizes, than look at the response. iPad Air & iPad Pro-Pra-Pre-Pru is illogical nonsense for profitary greed. In addition, just have one storage tier but of maximum capacity affordable by the technological limitations of the time, ex- the Classic iPod is classic for a reason.
9 months ago
Ming-Chi Kuo greatly dropped the ball with multiple reports of “iPhone X production problems” that would render the device “unavailable until February”.
No longer a reliable source.
No longer a reliable source.
9 months ago
As they should. Wouldn’t make sense for it be have the same production level as something much higher in demand.
Honestly if you’re in the market for the 8 save yourself the extra $120 and get a 7 instead. The differences are basically nonexistent.
Honestly if you’re in the market for the 8 save yourself the extra $120 and get a 7 instead. The differences are basically nonexistent.
9 months ago
Not so sure . The X price point and moving away from touchid is not for everyone . The iPhone 8 is a very nice unit
Just can't see people deciding to get a X over the 8 all the sudden.... it's £300 more..... that is a very large amount .
Trust me, Face ID is everything Apple said it would be but better. No need to be afraid anymore lol
9 months ago
Its normal since the X is the future of the normal iPhone ! The future of the Plus is coming next year
9 months ago
Not so sure . The X price point and moving away from touchid is not for everyone . The iPhone 8 is a very nice unit
I don't think this was meant to state that 8 AND 8+ production will be reduced, just 8 vs 8+ given that most users are going for either 8+ or X and the standard 8 is declining.
9 months ago
Not so sure . The X price point and moving away from touchid is not for everyone . The iPhone 8 is a very nice unit
Just can't see people deciding to get a X over the 8 all the sudden.... it's £300 more..... that is a very large amount .
Just can't see people deciding to get a X over the 8 all the sudden.... it's £300 more..... that is a very large amount .
9 months ago
People want either:
* Big screens
* One-handed operation
iPhone 8 size fits neither. Kill it.
[ Read All Comments ]
Popular media player VLC for iOS was today updated to version 3.1, introducing long-awaited support for Chromecast. Chromecast functionality has been a highly requested feature from VLC users.
...
Apple in iOS 12 introduced Screen Time, which is designed to provide you with information on how you're using your time on your iPhone and iPad.
With Screen Time, you can see how often you...
Apple today seeded the third beta of an upcoming tvOS 12 update to its public beta testing group, giving non-developers a chance to try out the new software ahead of its fall public release....
Apple today released a new update for Safari Technology Preview, the experimental browser Apple first introduced over two years ago in March of 2016. Apple designed the Safari Technology Preview to...
Netflix today revealed a new design for its "TV experiences," or TV-based apps, that aims to make it easier to find TV shows and movies on the service.
In addition to the rows with...
With Prime Day over, Amazon's sale is no longer taking the deal spotlight this week, but Twelve South has branched out of the event with a post-Prime Day sale of its own. Called the "Past...
Popular Mac calendar app Fantastical 2 was today updated to version 2.5, introducing a number of important changes that Fantastical users have been asking for.
The updated app includes support...
The European Commission hit Google with a $5.1 billion fine today, stating that the tech company broke EU antitrust laws by striking deals with Android phone manufacturers to favor Google's...
