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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 (Neutral), iPhone X (Neutral)
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Top Rated Comments
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24 weeks 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.
24 weeks 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.
24 weeks 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.
24 weeks 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
24 weeks ago
Its normal since the X is the future of the normal iPhone ! The future of the Plus is coming next year
24 weeks 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.
24 weeks 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 .
24 weeks ago
People want either:
* Big screens
* One-handed operation
iPhone 8 size fits neither. Kill it.
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