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Apple iPhone XS sees lower than expected demand with Watch Series 4 exceeding expectations

Kuo estimates that the Apple iPhone XS Max and iPhone XS pre-orders will peak in October.

  • Published: September 17, 2018 12:22 PM IST
Gallery Apple iPhone XS iPhone XS Max Lead

Ming-Chi Kuo, the famed analyst that focuses on Apple products has issued a new research note. This new note focuses on the pre-orders for the new products that the company launched at its ‘Gather around’ hardware launch event last week. According to the research note, the pre-orders for the Apple Watch Series 4 have exceeded expectations with “better than expected” numbers. The report attributed new features including ECG for the increase in demand. Kuo added that he predicts that the Apple Watch shipments are likely to reach about 18 million by the end of 2018 where the Series 4 is likely to account for about 50-55 percent of the total shipments.

Kuo noted that if the ECG feature extends to more countries then it is likely to increase the shipment. Moving to iPhone devices launched at the event, Kuo pointed out that iPhone XS has seen “lower-than-expected” orders. The report attributed this to users either opting out for the larger iPhone XS Max or the cheaper iPhone XR. According to a report by MacRumors, the note stated that the iPhone XS is likely to only account for about 10-15 percent of the total shipment of the new 2018 iPhone devices. This is down from the 15-20 percent prediction that was made earlier.

Watch: Apple iPhone XS, XS Max, and XR First Look

iPhone XS Max demand is in line with the expectation indicating that Apple has cracked the formula of pricing its devices high. Kuo also indicated a positive outlook for the iPhone XR because of the lower pricing along with the dual-SIM variant in the Chinese market. He increased the forecast for iPhone XR orders stating that the device will account for about 55-60 percent of total orders, up from the previous figure of 50-55 percent.

The research note stated that Kuo estimates that the iPhone XS Max and iPhone XS pre-orders will peak in October. iPhone XR will start shipping in October while helping the supply chain momentum.

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  • Published Date: September 17, 2018 12:22 PM IST