KGI analyst Ming-Chi Kuo has looked at data available since the release of the iPhone 8 models last month and says that sales of the iPhone 8 Plus have been "better than expected". But the analyst said that the expected "super cycle" of high iPhone sales will be delayed into 2018 due to production issues surrounding the iPhone X that's expected early next month.
The biggest issue that will keep supplies of the iPhone X constrained in 2017 is low production yield for the front-facing True Depth camera that is used for the groundbreaking Face ID technology in the new phone. However, Kuo sees the production issues easing after the end of the year, with an expected boom in sales as production ramps up.
Kuo's estimates show 210 to 220 million iPhones being sold in 2017, with the "super cycle" in 2018 seeing sales in the range of 245 to 255 million units. Once the iPhone X is on the market, Kuo expects demand for the current iPhone 8 line to drop. Kuo also believes that the selling points found on the iPhone X will also appear in the 2018 releases.