Apple Analyst: Buyers Are Waiting For iPhone XR
Apple's shift to higher-priced iPhones with colorful OLED displays is looking to be a slow transition.
Despite the fanfare around Apple's launch of two new OLED models later this week, the iPhone XS and iPhone XS Max, buyers are overwhelmingly expected to flock to the lower-priced, LCD model in the 2018 iPhone lineup, according to well-known Apple analyst Ming-Chi Kuo.
[Related: Head-To-Head: Apple iPhone XS Vs. iPhone XR]
Kuo, a TF International Securities analyst who's had a strong track record on Apple predictions, released a new note to investors this week saying he expects the one new LCD model, the iPhone XR, to lure an even larger share of buyers than he previously estimated.
That is, an even larger majority of buyers are believed to be waiting for the iPhone XR, which comes out Oct. 26.
The iPhone XR has a starting price of $749, compared to the $999 iPhone XS and $1,099 iPhone XS Max. The XS and XS Max ship on Friday.
The iPhone XS, in particular, is generating less interest from pre-order customers than expected, according to Kuo, via a report on MacRumors. While Kuo previously estimated that the iPhone XS would represent 15 percent to 20 percent of shipments for the new iPhone lineup, the analyst now pegs the iPhone XS at just 10 percent to 15 percent of the shipments.
On the other hand, Kuo is upping his estimate on the iPhone XR, to between 55 percent and 60 percent of shipments. That's an increase from his prior estimate of 50 percent to 55 percent of shipments of the new iPhone lineup.
Not only does the iPhone XR have a significantly lower price tag than the iPhone XS, the XR model also features a larger display—6.1 inches for the XR versus 5.8 inches for the XS. As we noted in our head-to-head comparison, the iPhone XR also promises longer battery life than the iPhone XS.
Apple's stock price was down 2.2 percent as of mid-afternoon Monday, to $218.88.