Reputed Apple analyst Ming-Chi Kuo in his latest investor note claims that while the Apple Watch Series 4 pre-orders have been above expectations, the iPhone XS series have seen “lower-than-expected” pre-orders.
He notes that most customers are opting for the bigger iPhone XS Max or they are waiting for the iPhone XR which goes up for pre-order on October 19. Due to the low pre-orders, Kuo has lowered his shipment forecast for the iPhone XS and expects it to account for only 10-15 percent of the total 2018 iPhone shipments.
As for the iPhone XS, its pre-orders have been in line with the expectations. The phone is doing particularly well in China despite its high price tag thanks to the introduction of the new gold color, dual-SIM functionality, and the bigger 6.5-inch display. Kuo expects the iPhone XS Max to account for 25-30 percent of 2018 iPhone shipments.
The Apple Watch Series 4 is doing better than expected due to its redesigned which includes a bigger display, slimmer chassis, and breakthrough features like ECG and atrial fibration detection. Due to the strong demand, Kuo expects Apple Watch Series 4 to account for 50 to 55 percent of total Apple Watch shipments for 2018 which he pegs to be around 18 million units. This could increase even further if Apple is able to expand the ECG functionality of Apple Watch Series 4 to other countries.
Kuo also has high hopes with the iPhone XR. He expects the handset to do particularly well in China due to its $750 price tag and dual-SIM support. The handset will end up accounting for 55 to 60 percent of total 2018 iPhone shipments. Overall, due to the strong demand for the iPhone XS Max and iPhone XR, Kuo expects Apple to ship around 75-80 million iPhone units for the rest of 2018.
Did you pre-order the iPhone XS last week? Or are you waiting for the iPhone XR?