Apple Says iPhone X Demand is 'Off the Charts' After Device Quickly Sells Out Around the World

[MacRumors]

iPhone X pre-orders began at 12:01 a.m. Pacific Time today and effectively sold out in just minutes. Orders placed now are estimated to ship in five to six weeks, pushing deliveries into early December.

While the shipping estimates aren't a reliable indicator of iPhone X sales without knowing how much supply is available, Apple issued a statement to MacRumors indicating that customer demand is "off the charts."

We are thrilled to be taking orders for iPhone X, the future of the smartphone. We can see from the initial response, customer demand is off the charts. We're working hard to get this revolutionary new product into the hands of every customer who wants one, as quickly as possible. We will keep accepting orders online, and iPhone X will be available at Apple retail stores on Friday, November 3 starting at 8 a.m., as well as from our carrier and retailer partners around the world.

"The surging shipment lead times around the iPhone X approach the very popular iPhone 6 Plus," said Brian White, an Apple analyst with Drexel Hamilton, in a research note obtained by MacRumors.

The comparison with the iPhone 6 launch doesn't tell us much since, again, we don't know how much inventory was available on each launch day.

Gene Munster, a longtime Apple analyst turned venture capitalist at Loup Ventures, said he views Apple's current five to six week shipping estimate as a sign that demand for the iPhone X is "trending more favorable than investor expectations."

Munster created a chart that visualizes exactly when the iPhone X shipping estimates changed throughout the early hours.

Leading up to iPhone X pre-orders, multiple reports suggested Apple's manufacturing partners were struggling to assemble the TrueDepth camera and 3D facial recognition system that powers Face ID.

For this reason, several industry observers said the iPhone X would be in extremely short supply until next year. Apple analyst Ming-Chi Kuo forecasted there would just two to three million units available at launch.

Apple stopped releasing first weekend sales numbers for new iPhone models last year, as demand typically outweighs supply, so the company feels it is no longer a representative metric for investors or customers.

Customers that missed out on pre-orders or face a lengthy shipping estimate can try their luck at Apple Stores on November 3. Apple said stores will have the iPhone X available for walk-in customers on a first come, first served basis, and it suggested customers arrive early as it anticipates strong demand.

Article Link: Apple Says iPhone X Demand is 'Off the Charts' After Device Quickly Sells Out Around the World

 

[Crosscreek]

Lol....that's what happens when you have a short supply.

 

[jkdsteve]

No Sheet Sherlock.....website/Apple Store App was down here for the first 5 minutes and by the time I could get on, 256GB was already sold out for delivery on Nov 3 (est. 2-3 weeks) in both colours. I'll have to troll my way to the Apple Store

 

[NachoGrande]

Turn a manufacturing mistake into positive news for your stock.

 

[velocityg4]

I guess the iPhone X was too expensive.

Although I can't imagine spending that much on a phone. I guess plenty of people could care less and will pay whatever it takes.

 

[citysnaps]

Going to love the conspiracy theories and justifications on this thread.

 

[ElQuesoFrito]

Anyone else still waiting for that email about the reservation?

 

[brianvictor7]

Good on Apple Hope the iPhone X pans out well.

 

[miniyou64]

This is going to be wild when people realize Face ID is completely insecure for practical usage

 

[nfl46]

Fake news!!! They only had 200,000 in supply!! lol. /s

 

[I’mpaced]

I can’t wait to send my wife some
Animoji texts. Lol

 

[Nr123*123]

This is honestly such a big part of their marketing. Constraining supply to increase demand, not only in the short term but for the product as a whole.

Imagine if the iPhone was readily available to pick up? It removes the “exclusivity” of it very quickly.

Edit: They are of course having manufacturing issues, but even if they weren’t, you know they’d issue the same statement.

 

[roland.g]

I guess the iPhone X was too expensive.

Although I can't imagine spending that much on a phone. I guess plenty of people could care less and will pay whatever it takes.

Installment plan pricing has made many people not think about that. Roll it into your cell bill and you don’t see the cost. Trade in and trade up programs mean that costlier phones keep people buying and that while plans have gone down slightly, carriers make money on hardware. Remember that the carriers get a wholesale price so while it is interest free financing of the device, the phone is still making them money. And on a monthly basis.

 

[iapplelove]

I was bummed I couldn’t get in store pick up..

 

[KeepCalmPeople]

Surely the only metric that counts for Apple is units delivered, i.e. bookable revenue?

 

[citysnaps]

This is honestly such a big part of their marketing. Constraining supply to increase demand, not only in the short term but for the product as a whole.

Imagine if the iPhone was readily available to pick up? It removes the “exclusivity” of it very quickly.

Yes, of course. Apple has no interest in making and recording sales as quickly as possible. And if some potential sales go to Samsung and google, it's all good.

 

[Sl1m]

Sold out about as quickly as we expected. 5-10 mins.

 

[MarkB786]

It's easy to appear "off the charts" when the "chart" shows minimal stock available in the first place. Apple is always good with the spin, although this same spin, year after year, is becoming tiresome. I am REALLY hoping for SOMETHING truly new and amazing from Apple soon. Just not sure they have that mojo anymore.

 

[maverick2007]

https://www.essential.com/?utm_sour...v_mnf_us_ios-design_static_balance-rocks_shop


Sham$e on Apple designers! Blown away with the design.

 

[macduke]

Crap. 17 after is about when my order went through, and that's when it slipped from November 3rd. I blame the crappy Apple Store App that us iPhone Upgrade Program members were forced to use this year. The website came up for me fine but I couldn't get that damn app to load until I rebooted my device. Even so it gave me a bunch of errors and I didn't receive any confirmation email until nearly four hours after launch.

I'm super irritated because I woke up on time and everything. It was supposed to be a simple button press to confirm everything that I was already pre-approved for. When is Apple going to let us iPhone Upgrade Program members opt-in for yearly upgrades? I want an email the week before where I can just set what I want and then have it show up on launch day. I want it to be like a subscription service.

 

[1800AirTAG]

I for one think that the timing is actually pretty good. It is (estimated) average compared to past released. According to all the rumors, I was expecting ship dates to slip into 5-6 weeks within a matter of 5-10 minutes not a couple of hours into it, and probably 2-3 months within 6 hours, yet it is still 5-6 weeks. It is very pleasing news.

 

[hlfway2anywhere]

This is going to be wild when people realize Face ID is completely insecure for practical usage

Feel free to substantiate your comment with some kind of evidence.

 

[brandonnnnnnn]

We can buy it on eBay for 2500

 

[MarkB786]

This is honestly such a big part of their marketing. Constraining supply to increase demand, not only in the short term but for the product as a whole.

Imagine if the iPhone was readily available to pick up? It removes the “exclusivity” of it very quickly.

Yes, the appearance of scarcity is a huge part of marketing theory. Companies like Samsung can make lots of different models, but Apple struggles to make enough of one single product (and it is not even a market-leading product in terms of volume)? The appearance of Scarcity has become an Apple NEED. Without it, their stock plummets and Cook loses some of his stock options.

 

[convergent]

This is ROFL material. Its a headline that pre-orders are "off the charts" and based on sell outs... but we all know they had like 1/10th the supply they usually have because they've rushed this product out and having trouble making them. Is there anything that won't be spun as a positive?

How about a more accurate headline... "As expected, manufacturing delays led to early sell outs of new iPhone X".