A significant number of customers are buying iPhone 7 in lieu of the new iPhone 8, given the lack of significant enhancements in the new phone, says KeyBanc analyst
Bengaluru: Apple Inc’s older iPhone 7 models are outselling the recently launched iPhone 8 ahead of the early November debut of the premium iPhone X, broker KeyBanc Capital Markets said, citing carrier store surveys.
Traditionally, new editions of the iPhone have sold quickly as fans queue for the latest upgrade and the surveys would add to signs that the iPhone 8 is not proving as popular as its predecessors.
“Many respondents indicated that a meaningful portion of customers are buying iPhone 7 in lieu of the new iPhone 8, given the lack of significant enhancements in the new phone," KeyBanc analyst John Vinh wrote in a client note.
Apple last month introduced the iPhone 8 and iPhone 8 Plus, which resemble the iPhone 7 line but have a glass back for wireless charging.
While iPhone 8 starts from $699 in the United States, iPhone 7 is retailing from $549 after a price cut.
“Feedback from stores indicate customers are waiting to purchase the iPhone X or to compare the iPhone X before buying the iPhone 8," wrote Vinh, who is rated four out of five stars by Thomson Reuters StarMine for his recommendation accuracy on the Apple stock.
Apple’s much-anticipated iPhone X, a glass and stainless steel device with an edge-to-edge display, will start shipping from 3 November. The 10th-anniversary iPhone is priced from $999 - Apple’s most expensive mobile till date.
Another reason for the slow uptick of the iPhone 8 could be the modest promotion by US carriers, Vinh said.
“While carriers continue to offer promotions for the new iPhone 8, they have been much more modest compared to the iPhone 7 launch last year," he wrote.
KeyBanc did surveys in the United States and United Kingdom.
Apple was not immediately available for comment.
The company’s shares were up 0.8% at $158.20 in early trading. Reuters
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