Analyst: iPhone 8 and 8 Plus sales are off to a solid start

In a note to clients — as noted by AppleInsider — KGI Securities analyst Ming-Chi Kuo says that iPhone 8 and 8 Plus sales are off to a solid and stable start despite claims from analysts and media citing a lower than usual turnout at Apple store locations as evidence of decreased interest in the new lineup. 

He thinks Apple is expecting a 50/50 demand split between the iPhone X and iPhone 8 and 8 Plus. Sales of the latter two smartphones are on target when taking that into consideration, the analyst says. 

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“We previously estimated the production weighting of new 2017 iPhone models at roughly 50% iPhone X and 50% iPhone 8/ 8 Plus,” Kuo tells clients. “This matches what we believe is Apple's (US) estimate for demand. At first glance, the combined first-week adoption rate for the iPhone 8/ 8 Plus might appear low (about half that of iPhone 6s/ 6s Plus and 7/ 7 Plus). However, this is due to the fact that the iPhone X is not included, not because iPhone 8/ 8 Plus first weekend sales have been weak.”

He says that manufacturing during the third fiscal quarter will be roughly split between the 4.7-inch and 5.5-inch models. Together, production of iPhone 8 and 8 Plus should yield 16 to 18 million units hitting the channel, the analyst predicts.

"While we acknowledge that queues outside SIM-free channels have been much shorter than after previous iPhone launches, we see stable first-weekend demand for the iPhone 8/8 Plus in carrier channels," Kuo writes. "Most of those camping outside unlocked-device outlets are presumably hardcore Apple fans and heavy users, whose plan this year is to gear up for the iPhone X.”