Supply chain constraint
According to an AppleInsider report, KGI Securities’ Ming-Chi Kuo expects Apple (AAPL) to face supply chain challenges for mass production of the iPhone X gold model. Kuo has estimated Apple will produce 10,000 units per day in the initial months. Kuo expects production of the gold version of the iPhone X to be extremely low at launch and even expects the model to be available to customers at a later date.
Kuo stated that these constraints are unlikely to impact Apple’s stock price, as the firm will be selling the same number of iPhones—though at a later date—following the launch on November 3, 2017. Analysts will be interested to see if Apple’s face recognition technology to unlock the iPhone X will be a hit with customers.
While the iPhone X will be available approximately 40 days after the launch of the iPhone 8 and iPhone 8 Plus, investors might also worry about product cannibalization. Customers might delay their purchases and wait for the launch of the iPhone X. However, Apple is likely to target two different customer segments based on the price difference between the two devices.
Samsung to start shipping a foldable display device next year
On the same day that Apple held its annual event and unveiled the new iPhones, Samsung (SSNLF) announced that it would start sales of a Galaxy Note smartphone with a foldable display next year.
Samsung continues to lead the global smartphone market at the end of 2Q17. Apple briefly held the top position in 4Q16, following issues related to the Galaxy Note 7. In 2015, Apple shipped 231.5 million smartphones—and this figure fell to 215.4 million in 2016.