Apple (AAPL) iPhone X Preorder Demand May Surpass 40-50M Units - KGI
- Wall St ends lower as investors weigh fresh employment data
- U.S. private employers add 103,000 jobs in November - ADP
- Data storage group MongoDB delivers upbeat guidance after Q3 results top estimates
- Stocks slip, 10-year Treasury yield falls as rate cut timing weighed
- A major Wall Street bank is out with S&P 500 forecast for 2024
In a note to clients this morning KGI's well-regarded analyst Ming-Chi Kuo said they expect Apple (NASDAQ: AAPL) iPhone X preorder demand may have surpassed 40-50 million units.
Kuo commented, "iPhone X is seen as the first model refresh since iPhone 6 from 2014, offering a revamped form factor design. We think Apple’s (US) core fans and some iPhone 6 and 6s users are willing to pay a hefty price for this upgraded device. As regards Face ID, we’re now convinced that TrueDepth camera (3D sensing) creates a far stronger user experience than those of Apple’s rivals. We also think that if Apple can effectively communicate this message of an exceptional user experience before preorders begin and prior to launch, it will go a long way to addressing some concerns that may hold back potential demand, thereby boosting preorder momentum."
The analyst believes the TrueDepth camera may be the main production bottleneck of a iPhone X ramp. "The 3D sensing (TrueDepth camera) on iPhone X is composed of a structured-light system, time-of- flight system and a front-facing camera, which represents a far more complex structure than those of rivals. It will therefore be harder to achieve mass production. While we project iPhone X will see output ramp up meaningfully in mid/ late October, tight supply may only start to ease in 1H18F due to strong demand."
Kuo sees shipments of iPhone X components likely to ramp up in October. "We believe some component suppliers have pulled in iPhone 8 from 4Q17 to 3Q17 so that more resources can be allocated to iPhone X in 4Q17 to meet robust demand," the analyst stated.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Citi Out Positive on Apple (AAPL)
- Midday movers: CVS Health, Apple, and more
- Stifel Starts Rivian Automotive Inc (RIVN) at Buy; 'high-quality driving brand awareness'
Create E-mail Alert Related CategoriesAnalyst Comments, Hot Comments
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!