Affirming market feedback that demand for the new iPhone 8 is not as popular its predecessors, recent reports reveal US sales of the older iPhone 7 are outselling that of the latest device.
Referencing US carrier store surveys, broker KeyBanc Capital Markets released the data, which also comes ahead of the launch of Apple’s new flagship smartphone, the iPhone X.
KeyBanc Analyst, John Vinh, states of the data:
“Many respondents indicated that a meaningful portion of customers are buying iPhone 7 in lieu of the new iPhone 8, given the lack of significant enhancements in the new phone”.
Drexel Hamilton Analyst, Brian White, has described demand for the new 8 series of iPhones as “muted“, following discussions with Chinese & Taiwan tech industry contacts.
Mr Vinh’s states many consumers are waiting for the iPhone X, or are looking to compare the new device with older iPhone models.
Last week, US-based carriers revealed third-quarter postpaid handset upgrades had dropped by nearly 900,000 compared to last year – a decrease brokerage Jefferies states is caused by poor iPhone 8 demand.
Mr Vinh also states that the slow uptake of the iPhone 8 could be affected by lower promotion by American carriers, compared to previous models:
“While carriers continue to offer promotions for the new iPhone 8, they have been much more modest compared to the iPhone 7 launch last year”.
In the United States, the new iPhone 8 starts from US$699, while the iPhone 7 has experienced a price cut and now retails for US$549.
In Australia, upon launch just over a year ago, the base model iPhone 7 retailed for around AUD$1079. The most affordable version of the phone is currently on the market for AUD$849 indicating a price cut of approximately AUD$230.
Apple’s tenth-anniversary flagship phone, the iPhone X, is set to be its more expensive smartphone to date with a price tag.
Some investors such as Jason Ware, Chief Investment Officer of Albion Financial Group, believes the new iPhone X will restore a strong uptick to the company:
“Worrying about any small down-tick in margins from the sale of the iPhone 7 or 8 is a wrong-headed way to look at it as iPhone X is really the flagship device where we’re going to see a strong upgrade cycle”.