KGI: Apple enjoys high iPhone 7 Plus demand, but overall sales weaker than 6s

27 September 2016

KGI Securities' Ming-Chi Kuo has outed a report suggesting iPhone 7 Plus sales surpass Apple's expectations. One of the possible explanations, according to Kuo, is the Galaxy Note7's battery problems.

Apparently, Samsung's problems with limited Note7 availability and the phone's recall has pushed users to look for an alternative. The iPhone 7 Plus' dual-camera setup is also listed as an incentive for the increased shipments.

KGI also conducted a survey to find out which is iPhone 7 color customers prefer most. Roughly 30-35% of the pre-orders worldwide have checked Jet Black as the variant of choice. In China, this chunk is even higher at nearly 50%. The most sought after storage option is 128GB.

However, the 7 duo is still seeing less demand compared to the iPhone 6s and iPhone 6s Plus. This means that predictions that Apple will see its first yearly decrease in iPhone sales numbers are likely to come out true.

The initial iPhone 7 supply shortage was due to better-than-expected demand for the iPhone 7 Plus and undersupply of jet black casings caused by a poor production yield rate of 60-70%; overall demand is still weaker than that for the iPhone 6S.

Earlier in September, Apple disclosed its new policy to not reveal the number of iPhones sold within the first few days of its launch.


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