So everybody must have heard by now that pre-orders for the iPhone X begin today (October 27) with only 2-3 million units to be available globally on the launching date (November 3).
The company is facing production delays due to problems with the 3-D sensor manufacturing process, which will be responsible for cutting iPhone X production in 2017 by 50 per cent from 40 million to 20 million.
While iPhone is one of the most popular smartphones in the world, the company may not be spared from the impact of such a delay in production.
Lower 2017 earnings
Apple announced the upcoming release of three smartphones on September 12: the iPhone 8, the iPhone 8 Plus and iPhone X.
CNBC Arabia quotes Daniel Gleeson, Senior Analyst at Ovum, research and consulting company, as saying that those who would want to buy the iPhone X are likely to be the enthusiasts, who want to have the latest device as soon as possible.
“This could lead to many people waiting to see the iPhone X before purchasing an iPhone 8 or 8 Plus, which could have an effect on Apple’s September quarter results,” says Gleeson.
“The iPhone X will potentially hamper and damage the sales of the iPhone 8 that’s a very big risk, because the iPhone launch events in late September have always been a very very big sales event for Apple. They’ve always helped perk up their late Q3 numbers and led into very strong Q4s,” he added.
Meanwhile, Reuters quotes analysts as saying that, while the delay of the iPhone X could hurt near-term sales, Apple’s loyal fans will still be eagerly willing to buy the new phone next year, boosting sales for fiscal 2018.
Also, Bloomberg Business Week quoted Analysts saying that on average forecast Apple’s revenue will increase 11 percent in the first fiscal quarter to $86.9 billion.
Apple is expected to reach full production of iPhone X in the first quarter of 2018, and that will likely prompt consumers to resort to other options this holiday season especially with the steep prices of iPhone 8 and iPhone 8 Plus starting at $699.
Phandroid, a platform for phones reviews, places Samsung Galaxy Note 8 on par with the iPhone X.
Note 8 at the price of $929 is not only cheaper than iPhone X priced at $999 but Phamdroid says that the Note 8 is a bigger phone overall. It has a 6.3-inch display compared to the 5.8-inch iPhone X. They both have very slim bezels, so the size isn’t too drastically different, it says.
It adds that the Note 8 easily bests the iPhone, when it comes to its 6GB RAM compared to iPhone X’s 3GB RAM.
The two devices are very similar when it comes to the camera, as they both have a dual camera setup with the second camera having a zoom lens, it notes.
“The iPhone X includes a new face unlocking feature and wireless charging, but it still can’t touch the Note 8 in the sheer number of features. The Note 8 has a stylus, fingerprint scanner, heart rate scanner, iris unlock, and more,” it says.
While some analysts give an edge for Android over Apple, others refuse the assumption that iPhone can be rivaled.
Is iPhone really ahead of its competitors?
Mashable, a media and entertainment company, quotes analyst Ming-Chi Kuo of KGI Securities as saying that Apple’s competitors will likely need at least two and a half years to replicate the TrueDepth camera’s functionality and user experience.
“The system is the key to Apple’s new “Face ID” biometric security technology, Animoji, and several other new features,” says Kuo.
According to Mashable, Kuo says that his bold predictions come shortly after he watched Apple’s official demonstrations of the camera system, which made him believe even more that the competition won’t be able to match it.
Despite this, Mashable says that Kuo’s new predictions about the competition come with slightly lower expectations for the iPhone X’s success in the short term.
“KGI revised its 2017 shipping estimates from 40 million to 30 to 35 million units — but the lower projection was due only to the continuing concerns about the X’s production, not demand. Kuo wrote that he has “full confidence” that the X will be a long-term success,” it said.
Silicon, a platform for IT analysis, quotes IHS Markit as saying that iPhone X will set Apple up for exceptional iPhone performance in 2018.
Shira Ovide, a Bloomberg columnist, says that the vast majority of new iPhones – about 81 percent of the global total this year – are sold to people who already own one.
She says that the difference of a few percentage points in purchases by current iPhone owners can be the difference between Apple popping champagne in 2018 or settling for stale beer.
She adds that the rate of purchases from current iPhone owners is tough to predict for at least two big reasons:
– The highest-end new iPhone model is likely to break the $1,000 smartphone barrier, making it a test of how much people are willing to pay for a pocket supercomputer.
– In the US and other mature technology markets, people have been holding onto their existing phones for longer than they did a few years ago.
While iPhone X has all the bells and whistles that one would expect from a flagship phone, only time will tell if Apple will be able to beat its previous sales with its latest release.