December 23, 2024

Apple Watch Series 4 Demand 'Better Than Expected', iPhone XS Demand 'Lower Than Expected' [Report]

Posted September 16, 2018 at 6:42pm by iClarified · 17110 views
Demand for the new Apple Watch Series 4 has been 'better than expected' but demand for the new iPhone XS has been 'lower than expected', according to analyst Ming-Chi Kuo.

A larger screen and innovative new health functions including the ability to take ECGs has driven Apple Watch Series 4 pre-orders. Kuo predicts Apple Watch shipments will reach 18 million units in 2018 with the Series 4 accounting for 50-55% of those.

Pre-orders for the iPhone XS are 'lower than expected' as customers either wait for the cheaper iPhone XR or choose the larger iPhone XS Max. Kuo now believes that the iPhone XS will only account for 10-15% of new iPhone shipments, down from 15-20%.

Despite the high cost, Kuo says iPhone XS Max pre-orders are in line with expectations.

There is strong Chinese demand thanks to the gold casing, dual-SIM, and large display. The XS Max average shipping time is shorter than the 2H17 iPhone X (1–2 weeks vs. 2–3 weeks), which we think is due to supply improvements. We maintain our forecasts that the XS Max will account for 25–30% of 2H18 new iPhone model shipments.

Kuo is positive on the iPhone XR given its lower pricing and dual-SIM support. The model is now expected to account for 55-60% of all new iPhone shipments.

We estimate the shipment peak of XS Max and XS will be in October and XR will start shipping and benefiting supply chain momentum in October.

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[via MacRumors]