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Kuo: Apple Watch Series 4 Pre-Orders Above Expectations, iPhone XS Seeing Lackluster Demand
Apple analyst Ming-Chi Kuo has issued a research note today, obtained by MacRumors, outlining his opinions about first-weekend pre-orders for the iPhone XS, iPhone XS Max, and Apple Watch Series 4.
Kuo says Apple Watch Series 4 pre-orders have been "better than expected," as a result of new innovative functions, such as electrocardiogram support. He predicts Apple Watch shipments will reach 18 million units in 2018, with the Series 4 lineup accounting for 50 to 55 percent of those orders.
If the ECG support expands to more countries, Kuo believes the Series 4 lineup could see even stronger shipment momentum.
In contrast, Kuo says iPhone XS pre-orders are "lower-than-expected," as customers opt for the iPhone XS Max or wait for the iPhone XR. Kuo has lowered his forecast for iPhone XS orders, believing the model will account for only 10 to 15 percent of shipments of the new 2018 iPhones, down from 15 to 20 percent.
Kuo says iPhone XS Max pre-orders have been in line with expectations, signifying the success of Apple's high-pricing strategy:
The well-known analyst increased his forecast for iPhone XR orders, estimating that the model will account for 55 to 60 percent of shipments of the new 2018 iPhones, up from 50 to 55 percent previously.
"We estimate the shipment peak of XS Max and XS will be in October and XR will start shipping and benefiting supply chain momentum in October," said Kuo.
iPhone XS, iPhone XS Max, and Apple Watch Series 4 pre-orders began Friday.
Kuo says Apple Watch Series 4 pre-orders have been "better than expected," as a result of new innovative functions, such as electrocardiogram support. He predicts Apple Watch shipments will reach 18 million units in 2018, with the Series 4 lineup accounting for 50 to 55 percent of those orders.
If the ECG support expands to more countries, Kuo believes the Series 4 lineup could see even stronger shipment momentum.
In contrast, Kuo says iPhone XS pre-orders are "lower-than-expected," as customers opt for the iPhone XS Max or wait for the iPhone XR. Kuo has lowered his forecast for iPhone XS orders, believing the model will account for only 10 to 15 percent of shipments of the new 2018 iPhones, down from 15 to 20 percent.
Kuo says iPhone XS Max pre-orders have been in line with expectations, signifying the success of Apple's high-pricing strategy:
There is strong Chinese demand thanks to the gold casing, dual-SIM, and large display. The XS Max average shipping time is shorter than the 2H17 iPhone X (1–2 weeks vs. 2–3 weeks), which we think is due to supply improvements. We maintain our forecasts that the XS Max will account for 25–30% of 2H18 new iPhone model shipments.Kuo sees a positive outlook for the iPhone XR, available to pre-order October 19, given its lower pricing and dual-SIM support in China.
The well-known analyst increased his forecast for iPhone XR orders, estimating that the model will account for 55 to 60 percent of shipments of the new 2018 iPhones, up from 50 to 55 percent previously.
"We estimate the shipment peak of XS Max and XS will be in October and XR will start shipping and benefiting supply chain momentum in October," said Kuo.
iPhone XS, iPhone XS Max, and Apple Watch Series 4 pre-orders began Friday.
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9 months ago
No surprises. I have the X and don't see a reason to upgrade. More likely to upgrade my series 3 to 4 though.
9 months ago
Completely unsurprised by the lack of demand for the iPhone XS. It is a marginal upgrade, not worth spending another 1000.
9 months ago
The changes from X to Xs does not justify to make the purchase.
If they make a SE sized with the same feature, then it is a different story.
If they make a SE sized with the same feature, then it is a different story.
9 months ago
But... according to MacRumors forum users... everyone thinks the XR is a bad phone and no one will buy it...
It's not a bad phone. It's a good phone being sold at a bad price.
9 months ago
But... according to MacRumors forum users... everyone thinks the XR is a bad phone and no one will buy it...
9 months ago
It’s an absurd statement that iPhone XS preorders are lackluster because people are opting for the iPhone XS Max instead. They are two sizes of the same product.
Regardless, it’s better for Apple if the iPhone XS Max cannibalizes sales of the iPhone XS.
We have definitely reached peak stupidity in Apple coverage.
Regardless, it’s better for Apple if the iPhone XS Max cannibalizes sales of the iPhone XS.
We have definitely reached peak stupidity in Apple coverage.
9 months ago
Don’t know why everyone using an X was waiting for something to upgrade to unless you’re after something bigger or something to boast about.
With a six year support plan it’s quite clear Apple are playing the long game here.
Minor improvements, shifting product line. There is something for everyone, except those with small hands...
With a six year support plan it’s quite clear Apple are playing the long game here.
Minor improvements, shifting product line. There is something for everyone, except those with small hands...
9 months ago
The price points have gotten absurd, imo. I think companies like Apple will continue to drive up the cost of ownership until people speak with their wallets. I, for one, cannot justify the asking price of these devices anymore.
I’ve always carried both Android and iPhones top dogs, but with existing ones performing well above my ask...there’s nearly no compelling reason for me to support the likes of new Galaxy (esp the Note 9) and iPhone’s bottomless greed.
As always, just my opinion.
I’ve always carried both Android and iPhones top dogs, but with existing ones performing well above my ask...there’s nearly no compelling reason for me to support the likes of new Galaxy (esp the Note 9) and iPhone’s bottomless greed.
As always, just my opinion.
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