- Apr 12, 2001
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.
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.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.
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.
Article Link: iPhone 8 Production Said to Drop Significantly Given Popularity of iPhone 8 Plus and iPhone X