Ming-Chi Kuo predicts strong iPhone sales
Apple (AAPL) analyst Ming-Chi Kuo has estimated robust sales for Apple’s new products, especially the iPhone XS Max. Kuo from TF Securities expects demand for the iPhone XS Max to be three to four times higher than the iPhone XS. The analyst also mentioned that the gold and grey devices are selling better than the silver ones.
The predicted demand softness in China due to high iPhone prices is unlikely to occur, according to Kuo. He claimed the 256-GB model of the iPhone XS Max is more in demand than the 512-GB one driven by the shortage in supply of NAND chips.
Kuo expects Apple to sell between 75 million to 80 million iPhones in its launch period. Kuo also expects the average selling price to be higher than market estimates between $750 and $770.
Rosenblatt Securities analyst is bearish on iPhone demand
Analyst Jun Zhang from Rosenblatt Securities though has a bearish outlook on the demand for the latest iPhone devices. The analyst had a similar outlook during the launch of the iPhone X and was proved wrong.
Zhang believes iPhone devices are overpriced and has estimated iPhone sales to be weak over the first post-launch weekend. Zhang has an estimated price target of $200 for Apple, which is a premium of 9% compared to its current price at $220.42.
Zhang’s report states, “Our channel checks indicate iPhone XS and iPhone XS Max weekend sales are higher than iPhone X weekend sales. We believe this is mainly due to a better production ramp for the iPhone XS and iPhone XS Max.”
Zhang expects sales for the iPhone XS and XS Max to be lower than the iPhone X over a two-month period.