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Kuo: iPhone 11 Order Demand Better Than Expected, New Colors Cited as Key Influencing Factor

16 Sep 2019

iPhone 11 and iPhone 11 Pro order demand is ahead of expectations since the start of pre-orders on Friday, according to a research note by Apple analyst Ming-Chi Kuo and obtained by MacRumors.


Basing his analysis in part on Apple's online shipping estimates, Kuo believes demand is "significantly stronger" for the iPhone 11 in the new green and purple colors and the iPhone 11 Pro in midnight green, but he notes that the latter model is facing production issues and is currently constrained.
The shipping times of midnight green iPhone 11 Pro, green iPhone 11, and purple iPhone 11 are all two–three weeks or longer. The shipping times of other colors are roughly shorter than ten days. It should be noted that the glass casings of midnight green models are currently facing production issues; therefore, it makes the shipping time longer.
Kuo sees demand for the more expensive iPhone 11 Pro being higher in the U.S., while the cheaper iPhone 11 series is doing particularly well in the Chinese market. As a result, TF Securities has increased its forecast of iPhone 11 shipments in 2019 to 70–75 million units (versus the previous 65–70 million units), and predicts the iPhone supply chain will grow steadily in the fourth quarter.

Kuo believes the iPhone 11 is an excellent upgrade choice for iPhone 6/6s/7 users, especially because of its lower price, which is roughly equivalent to 1–1.3 times the average monthly salary in China. Kuo says this is "close to the price sweet spot," given that the iPhone XR's price equivalence was 1.5–1.7 times the average monthly salary in China. In addition to Apple's aggressive pricing strategy, Kuo notes that the zero-interest installment plans for 24 months are also lowering the purchase barriers.

The successors to the iPhone XS and XS Max, the iPhone 11 Pro and 11 Pro Max unveiled last week feature triple-lens rear cameras for improved photo and video capabilities. The lower-cost iPhone 11 series, which succeeds the iPhone XR, includes a number of upgrades such as a dual-lens rear camera, six new colors, an A13 Bionic chip, and Dolby Atmos sound.

The iPhone 11 starts at $699, which is $50 less than the iPhone XR, while the iPhone 11 Pro starts at $999 and the Pro Max starts at $1,099. Apple's new devices officially start shipping this Friday, September 20.

Related Roundups: iPhone 11, iPhone 11 Pro

This article, "Kuo: iPhone 11 Order Demand Better Than Expected, New Colors Cited as Key Influencing Factor" first appeared on MacRumors.com

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