The popularity of the iphone 8 plus and iphone x sinks the production of the iphone 8
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According to popular securities analyst Ming-Chi Kuo, production of the iPhone 8 is set to experience a drop of between fifty and sixty percent this quarter. The cause is twofold. On the one hand, the 4.7-inch iPhone 8 has fewer attractive aspects for users. On the other hand, consumers have already demonstrated their preference for the iPhone 8 Plus and iPhone X.
IPhone 8 falls
In his latest note from analyst firm KGI Securities, Kuo has noted that demand for the iPhone 8 is turning out lower than expected. The result of this would be none other than a reduction in orders by Apple to the company Pegatron, which is responsible for the assembly or assembly of the iPhone 8 in Taiwan, something that, on the other hand, has been rumored for weeks.
Pegatron - iPhone 8 production will decrease 50-60% QoQ in 1Q18F due to lower-than-expected demand: with fewer major outlets and given consumer preference for the iPhone 8 Plus with a limited price gap, we expect that iPhone 8 production orders experience a 50-60% QoQ decrease in 1Q18F, potentially reducing Pegatron's utilization rate. But considering that the new iPhone orders may be more diverse (compared to a single iPhone 8 model in 2H17), and assuming that the new models have more attractive features than the iPhone 8, we are confident of the growth momentum of Pegatron in 2H18F. ”
This same week, the research firm Canalys published that the iPhone 8 Plus has surpassed the iPhone 8 with an estimated shipping figure of 6.3 million units compared to 5.4 million units respectively. Based on these figures, the iPhone 8 Plus is the first Plus iPhone model to outpace its 4.7-inch younger brother in one quarter.
And while Apple doesn't disclose exact sales for each of the iPhone models, its CEO Tim Cook said that the iPhone 8 Plus "has had the fastest start of any Plus model, " which was "somewhat surprising."
Regarding iPhone X demand, Kuo has been very positive and estimates that iPhone X production will increase 35-45 percent this quarter compared to the previous quarter, which should help reduce shipping times for expensive to the Christmas holidays.
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