Even though the initial supply of the newly released, affordable iPhone XR lasted only four days, analyst Jun Zhang from Rosenblatt Securities says that iPhone XR sales are weak. This comment is in line with what analyst Ming-Chi Kuo said, according to whom the pre-order demand for the iPhone XR was lower than the initial interest displayed in iPhone XS and iPhone XS Max in September.
iPhone XR Sales Much Better Than iPhone 8 Figures From Last Year, but Signs of Worry Are Still There
Based on sales figures extrapolated from various retail channels, Zhang estimates that around nine million units of the iPhone XR were sold, which is a million short of his expectations. Zhang has lowered his iPhone XR shipping forecasts by three million because of weak pre-orders and also predicts that Apple will cut back on the production of iPhone XS and iPhone XR by three million units in November and December, of which 1 million each month would be iPhone XS and iPhone XS Max, and the remaining two million will be iPhone XR.
The analyst has also lowered his production estimates for the new iPhones to 88 million units from 90 million to 95 million units, and shipping estimates to 76 million to 77 million units from 80 million to 85 million units. Owing to the higher prices of the new phones, the average selling price is expected to increase by nearly 8 to 10 percent.
Despite this, Zhang’s previous forecast of a $61 billion revenue and $2.65 earnings per share remains the same, because of the higher ‘average selling price’ and the forthcoming iPad and Mac upgrades. He expects the company to report revenue of $91.2 billion for the holiday quarter.
The analyst also remains positive about Apple’s stock market performance, sticking to his forecast of a price of $200 per share. However, Apple’s stock had surpassed this figure on August 1 and Rosenblatt usually tends to underestimate the price of Apple’s stocks.
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- Apple’s Supply Chain Will Ramp up iPhone XR Production in October Thanks to Its High-End Features and Lowered Pricing
News Source: AppleInsider