Apple iPhone X super cycle won’t happen until 2018: Ming-Chi Kuo

KGI Securities analyst Ming-Chi Kuo says the iPhone X sales won't gain momentum until next year due to ongoing production issues.

By: Tech Desk | New Delhi | Updated: October 10, 2017 7:16 pm
Apple, iPhone, Ming-Chi Kuo, iPhone X, iPhone X super cycle, iPhone 8, iPhone 8 Plus, iPhone X specifications, iPhone X price in India Apple iPhone X sales won’t gain momentum until next year due to ongoing production issues.

KGI Securities analyst Ming-Chi Kuo says the iPhone X sales won’t gain momentum until next year due to ongoing production issues. The analyst believes that the reported Truedepth camera system and Face ID issues won’t be “significantly addressed” before the end of the year. But once the iPhone X manufacturing issues are resolved, the phone’s sales will likely to pick up in the first half of 2018.

Kuo in a research note said that problems with production of the Truedepth camera system will delay the iPhone X super cycle to next year. The analyst says the manufacturing problems will be solved in the fourth quarter, which will allow Apple to ship more iPhone X units next year. Analysts have been claiming that a lot of people will upgrade to the iPhone X and it has been referred as a super cycle. For 2017, Kuo forecasts Apple will ship anywhere close to 210 to 220 million iPhones. And for the next year, Apple is likely to sell around 245 to 255 million iPhones.

Here’s an excerpt from Kuo’s note, first obtained by MacRumors:

The market generally refers to 2017 as the super cycle of the iPhone, but we think the real super cycle will be in 2018 for the following reasons: (1) TrueDepth Camera’s production issues will be significantly addressed in 2018F; (2) new models launched in 2018F will enjoy a longer sales period than those unveiled in 2017; and (3) the product mix, specifications and designs of new iPhone models from 2018F will be more competitive. We estimate that for 2017, iPhone shipments will come in at 210-220mn units, which should grow to be 245-255mn units in 2018.

Last month, Apple launched the iPhone X alongside the iPhone 8 and iPhone 8 Plus. The flagship, iPhone X, is the tenth-anniversary iPhone with an all-new design and the one featuring an advanced Face ID recognition system. The iPhone X will be made available on November 3 in major markets, including India. The high-end smartphone will cost upwards of Rs 89,000 for the base model. The iPhone 8 and iPhone 8 Plus are minor upgrades over their predecessors – the iPhone 7 and iPhone 7 Plus. Both smartphones are available in India for purchase.

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