In his latest note issued to investors, KGI analyst Ming-Chi Kuo says that despite the overwhelming demand for the iPhone 7 and iPhone 7 Plus, the handsets will not sell as well as the iPhone 6s for Apple. He, however, does expect Apple to ship 70-75 million units of the iPhone 7, up from his original estimate of 60-65 million.
The increase in estimates and the higher demand for the iPhone 7 is due to the Galaxy Note 7 battery fiasco that has forced many consumers to look at other alternatives. The positive reviews of the dual-camera system of the iPhone 7 Plus have also favored Apple.
Kuo notes that the shortage of the iPhone 7 and iPhone 7 Plus are not just due to the overwhelming demand. For the Jet Black model, the yields are only around 60-70 percent that is making it tougher for Apple’s partner to produce enough quantities of them. Secondly, the new iPhones were available in 28 countries on launch day — up from only 12 last year, that led to the stock being dispersed over a wider market thereby creating a shortage.
A survey conducted by KGI shows that the pre-orders of the iPhone 7 and iPhone 7 Plus were evenly split this time around likely due to many people going for the bigger iPhone from the Galaxy Note 7. The new Jet Black color is also in high demand, with almost 45-50 percent customers in China who pre-ordered the new iPhones opting for it.
The real demand surrounding the new iPhones will be clear around the end of October once Apple is able to catch up with the initial demand.
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