With the help of Chinese consumers, increased demand for new iPhones is coming out ahead of the expectations of one analyst. Ming-Chi Kuo increased his iPhone 11 series shipment forecast from 65-70 million units in 2019 to 70-75 million units, while noting the supply chain will “grow steadily” in Q4, CNBC reported.
U.S. consumers prefer Apple’s costlier models. The standard iPhone 11, however, seems to be more attractive to Chinese buyers, per Kuo. He noted that the iPhone 11 demand is “lackluster” in the U.S, with strong demand for the “more expensive iPhone 11 Pro.” He bases this on shipment times, which are two to three weeks past the launch date for the more costly models.
At the same time, it was noted that Apple’s zero-interest installment program and trade-in programs have helped to drive demand for the more expensive model. At the launch event last week, Apple announced the $1099 iPhone 11 Pro, the $999 iPhone 11 Pro and the $699 iPhone 11. Pre-orders started last Friday (Sept. 13), and they will arrive at stores this coming Friday (Sept. 20).
Kuo, an analyst at TF International Securities, said per the report, “Under the premise that Apple doesn’t announce the pre-order result, we believe that the change of shipping time offered by Apple’s official website is better to reflect the actual demand, because Apple’s official website accounts for 30–40 percent of the total iPhone shipments. We think the reference value of pre-order results announced by other channels is lower.”
The news comes as Apple has reached a rare milestone for a second time. Its stock went up 3 percent during Wednesday’s (Sept. 11) trading, giving the company a $1.01 trillion capitalization.
The company’s stock ended the day at $223.59 per share. Apple came out ahead of the $1 trillion mark in August of 2018, but dropped due to slow iPhone sales in China. Apple, in an attempt to raise its stock price, bought back millions of its own shares.
On Tuesday (Sept. 10), Apple held an event where it showcased its new iPhone, iPads and Apple Watch. The company also said it would offer a $50 cut in price for the entry-level model of the iPhone 11.