Apple to drop iPhone 8 production significantly, iPhone X to retain demand and growth in 2018: KGI


iPhone X_fonearena-4

Apple for the time ever has launched three new iPhones in such a short period. Given the popularity of the iPhone X and the iPhone 8 Plus, KGI Analyst, Ming-Chi Kuo predicts that iPhone 8 production to see a 50-60% drop in the production significantly.

In a fresh investor note this morning, Kuo says that the iPhone X production will hit between 25 to 27 million units during this quarter and might sell close to between 22 million and 24 million. The huge demand for the iPhone X will negatively affect the iPhone 8 and he anticipates that it might sell less than originally expected.

According to Canalys numbers posted in the last week, iPhone 8 Plus has out-shipped the iPhone 8 and it is the first time that a Plus variant has out-shipped its smaller sibling in a single quarter. Apple generally doesn’t reveal numbers of units shipped on a  model-by-model basis, but Tim Cook has said that 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.

Talking about the iPhone X demand, Kuo estimates that production will rise 35-45% this quarter compared to last quarter and also sees the strong iPhone X demand continuing into 2018. Once the potential and regular audience start buying the iPhone X, it will eventually drop the concerns like the no home button, new gesture-based interface, etc that are surrounding the iPhone X and will gradually improve the sales.

Furthermore, Kuo also predicts that Foxconn production line will switch it’s iPhone 8 Plus production to iPhone X line sometime in late Q4 to help fulfill additional orders.

Source