Why iPhone X could be in short supply at launch

Apple will start taking pre-orders on its new iPhone X later this month October 27 and the handsets will go on sale the following month November 3.

The demand for the new iPhone X is expected to be high and this could lead to supply shortages at launch.

Reports say, the new iPhone X is expected to encourage a significant number of existing iPhone owners to upgrade to the new device. This is apparently called a ‘super cycle’ which could see as significant increase in iPhone sale because of the new handset

According to KGI Securities analyst Ming Chi Kuo, this ‘super cycle’ will not happen until 2018 due to a number of factors.

‘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.’

Apple is likely to have strong demand for their new iPhone X from launch until 2018 and it could take the company a significant amount of time to match the demand for the handsets.

Geeky Gadgets