Buy iPhone X supply chain shares, KGI says

Yolanda Curtis
September 19, 2017

While the phone is going on sale from November 3, a report from KGI Securities' analyst Ming-Chi Kuo, states that the flagship iPhone X will see a a very high demand but the company would not be able to ship that much, until next year. We revise down our forecast for 2017F iPhone X shipments from 45-50 million to around 40 million units, but we therefore revise up our 2018 iPhone X shipment estimate to 80-90 million units.

The downbeat note - which referred to the iPhone X's staggering $1,856 price tag - came as the iPhone 8 and 8 Plus failed to generate a feeding frenzy after becoming available for pre-orders on Apple's site early on Saturday morning. Kuo believes that this is happening because a large number of prospective iPhone buyers are apparently waiting for the iPhone X to be available.

The iPhone X certainly is living up to its expectations in terms of being a state of the art smartphone, but such hindrances will affect the positive vibe around Apple.

iPhone fans shouldn't be that surprised as with every innovation the demand for the iPhone increases and inevitably crosses its expected supply.

Apple will begin taking pre-orders for the iPhone X from October 27, and will start shipping the unit worldwide, including India from November 3, as it confirmed at the launch event. Rather than spending at least $699 for a new iPhone 8, it will make more sense for a lot of people to wait a few more weeks and pay at least $999 for the radically new iPhone X.

The later release date means the iPhone 8 will still have its time in the spotlight and at the same time, Apple can address supply problems for the iPhone X. "We believe this is because there is a strong likelihood that iPhone X demand will cannibalize iPhone 8 pre-orders", Kuo said in the report, obtained by Mac Rumors.

Meanwhile, pre-orders for iPhone 8 and iPhone 8 Plus will open on September 22 in India and both the smartphones will hit the market on and from September 29. Here, the iPhone 8 is tagged at INR 64,000 and 77,000 for the 64GB and 256GB variants respectively.

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