Pegatron CEO slams analysts, 'cautiously optimistic' about Apple iPhone 7 sales

AppleInsider

The CEO of Apple's manufacturing partner Pegatron notes that the iPhone 7 is exceeding estimates on the strength of the phone alone, and does not believe that the Samsung Galaxy Note 7 recall is inflating sales numbers artificially.

"Consumers do not care about what analysts say about the lack of innovative features," said Pegatron chairman Tung Tzu-hsien to the Nikkei Asian Review. Tung declined to elaborate on specific figures, but remains "cautiously optimistic" about sales of the iPhone 7.

Tung believes that the iPhone 7 is selling on the strength of the phone itself, and not on the weakness of other devices.

"The Note series only takes up a small portion of Samsung's total shipments," said Tung, denying that the Samsung Galaxy Note 7 battery recall is having an appreciable effect on iPhone sales. "Our U.S. client's new handsets are competing against Samsung's S7 series rather than the Note 7."

Pegatron's primary Apple-related duties involve assembly of the iPhone 7. Foxconn is the main producer of the larger size, and is the main builder of the iPhone 7 Plus.

Both Pegatron and Foxconn will announce quarterly financial results in early October, which should shed some light on the situation. Apple has said that it will not reveal September sales figures of the iPhone 7, but declared that the iPhone 7 Plus was sold out globally before the device even started arriving in customers' hands.

The Pegatron chairman's remarks stand in contrast to KGI Securities remarks on Sunday. KGI's Ming-Chi Kuo claimed that while Apple will sell more iPhones than previously estimated by the firm, sales of the iPhone 7 family through the end of 2016 wouldn't hit that of the iPhone 6s at the end of 2015.

KGI stands alone in predicting disappointing sales before the end of 2016. T-Mobile's CEO and other South Korean analysts are seeing record sales, with one of the analysts expecting 100 million of the new iPhone models sold before the end of the year.

JanNL

"do not care about what analysts say about the lack of innovative features"
"iPhone 7 is selling on the strength of the phone itself, and not on the weakness of other devices."

Good observations to my concern.

lkrupp

Good to see Apple suppliers chiming in and fighting back. Maybe Apple should try fighting back too. When financials are announced start calling out the nay-sayers by name and wonder publicly if investors should continue doing business with them.

gatorguy

lkrupp said:

Good to see Apple suppliers chiming in and fighting back. Maybe Apple should try fighting back too. When financials are announced start calling out the nay-sayers by name and wonder publicly if investors should continue doing business with them.

Not using the term 'cautiously optimistic" would have been a bit more reassuring. Are those the words he actually used or AI's?

rogifan_new

Cautiously optimistic isn't that reassuring, is it?

nolamacguy

it's the job of a CEO to be cautious and planning contingencies. you should be concerned if he weren't. so by itself that armchair executive crit means nothing. 

randominternetperson

sog35 said:

I 100% agree with this.

Its time for Cook to take of the kitty gloves and come out swinging during conference calls and even on Twitter during the quarter.

There is no reason for Cook not to call out analysist, especially when its based on pure lies.  Like Kuo stating the only reason iPhone7 is doing so well is because the Note7 is blowing up.

First, they are "kid" gloves. No cats involved. Second, Everyone is entitled to an opinion about why the iPhone 7 is doing well. We'll never know how much exploding Samsungs have helped Apple in the near or long term.

mike1

rogifan_new said:

Cautiously optimistic isn't that reassuring, is it?

A CEO should ALWAYS be cautiously optimistic when things are going well. Sets reasonable expectations and communicates that there will always be events outside their control, i.e politics, weather, other suppliers, oil prices, fickle consumers, logistical issues like bankrupt shipping companies. Things can turn on a dime.

TurboPGT

sog35 said:

lkrupp said:

Good to see Apple suppliers chiming in and fighting back. Maybe Apple should try fighting back too. When financials are announced start calling out the nay-sayers by name and wonder publicly if investors should continue doing business with them.

I 100% agree with this.

Its time for Cook to take of the kitty gloves and come out swinging during conference calls and even on Twitter during the quarter.

There is no reason for Cook not to call out analysist, especially when its based on pure lies.  Like Kuo stating the only reason iPhone7 is doing so well is because the Note7 is blowing up. Or the stupid report saying sales of the iPhone7 are down 25% around the world besides the USA.

A CEO like Musk goes on the offensive when stupid lies like that appear about Tesla. Cook should do the same for Apple.  Its been 4 years since I began investing in this stock and Cook is still allowing these weaklings to strong arm Apple. Its pathetic.

You love to repeat this all the time, the idea that Cook should act like some 5 year old and (LOL!) "go on Twitter" and say "Nuh uh!".

Nobody cares what analysts think. Not Apple. And not customers.

80s_Apple_Guy

Sorry, iPhone 7 is a major upgrade and awesome phone. Not changing the exterior to me is a great thing. Can still use my extra screen protectors and with a slight mod even my old cases. Not needing to buy everything again is a big plus for me. Changes if they bring great new things is good, for no good reason is bad. Bravo Apple for doing the right thing 

BxBorn

Carrier incentives of $650 on an iPhone 6 or 6s is probably driving a lot of 7 sales. I bought 2 because of the incentive. My wife and I each had a 6 so it was a no brainer to get the 7 for $100 each. However, had there been no incentive, we'd be riding the 6 until it fell apart.

Long Apple

Long term investors should welcome more of such negative "anal-ysis". I do. This way, Apple can buy back more of their shares on such dips. Return on such discounted buy backs are accretive and generate better returns in the long run. For those of us who are Long Apple, such dips also allow us to take small punts on dips.

gmgravytrain

sog35 said:

lkrupp said:

Good to see Apple suppliers chiming in and fighting back. Maybe Apple should try fighting back too. When financials are announced start calling out the nay-sayers by name and wonder publicly if investors should continue doing business with them.

I 100% agree with this.

Its time for Cook to take of the kitty gloves and come out swinging during conference calls and even on Twitter during the quarter.

There is no reason for Cook not to call out analysist, especially when its based on pure lies.  Like Kuo stating the only reason iPhone7 is doing so well is because the Note7 is blowing up. Or the stupid report saying sales of the iPhone7 are down 25% around the world besides the USA.

A CEO like Musk goes on the offensive when stupid lies like that appear about Tesla. Cook should do the same for Apple.  Its been 4 years since I began investing in this stock and Cook is still allowing these weaklings to strong arm Apple. Its pathetic.

But that's why Elon Musk is so beloved to investors. Being a BS artist himself, he doesn't let some other BS artists spin some BS tales about his company's numbers. Dudes like Kuo are basically calling a whole bunch of other people liars because he believes he knows more about Apple's sales better than anyone else. I agree that Tim Cook probably shouldn't go swinging at everyone who says his sales numbers are wrong, but it still hurts that he allows these lying dirtbags all sorts of defamation liberties when they don't really have a true picture of what Apple is actually selling. Then again, I'm not even sure Cook is believed by anyone. I know a couple of years back Gene Munster basically called Tim Cook a liar about first weekend iPhone sales. Apple is just a freaking target of all those crooked Wall Street players. Companies like Amazon, Alphabet and Microsoft aren't even being touched by the dirtbags. No shareholder wants to own a company with a constant doom and gloom scenario in the background.

lifewave98

sog35 said:

I don't understand why people don't upgrade their phones at least every 2 years.

Waiting 3 or 4 years to upgrade is DUMB. Unless you are totally desperate for money and can't even buy 3 meals a day, there really is no reason not to upgrade every other year.

Cost of getting an iPhone every 2 years:

1. Buy iPhone for $650
2. After 2 years sell iPhone for $300
3. Total cost of iPhone for 2 years was $350
4. Comes out to less than 50 cents a day, $15 a month, $175 a year

I mean seriously. 50 cents a day!  For something you use 12+ hours a day, every day. You are basically paying less than 4 cents an hour to use an iPhone. Go show me something else that gives so much value for such a cheap price.  People pay $6 for a cup of Starbucks coffee that is gone in 10 minutes.

So lets say you hold your iPhone for 3 years. How much do you actually save?

1. Buy iPhone for $650
2. After 3 years sell iPhone for $200
3. Total cost of iPhone for 3 years is $450
4. Comes out to 41 cents a day

So to save LITERALLY 9 cents a day you are willing to hang on to an out dated phone? Really? NINE CENTS A DAY you are willing to sacrifice a ton of extra features, slower CPU, and a battery that is half way into the grave? Nine. Cents.

Or if you hold onto the phone for 4 years. You will get about $100 for trade in. That's 38 cents per day.

So you are willing to have an ANCIENT phone that won't even run the latest version of iOS with a battery that dies in 6 hours?  To save 12 cents a day?  TWELVE CENTS!!!! Come on. Get real.


Now if you are in poverty condition I understand wanted to save 9 cents a day or 12 cents a day to hold on to an old iPhone. But for the rest of us it makes ZERO sense, or CENTS.  Upgrading every 2 years is SMART. Trying to save a few pennies a day for a lesser experience and losing productivity is DUMB.

You remind of the dude who performed cost analysis for everything we did in the office.   We found him annoying but appreciated what his numbers really portrayed. 

BxBorn

sog35 said:

BxBorn said:

Carrier incentives of $650 on an iPhone 6 or 6s is probably driving a lot of 7 sales. I bought 2 because of the incentive. My wife and I each had a 6 so it was a no brainer to get the 7 for $100 each. However, had there been no incentive, we'd be riding the 6 until it fell apart.

There are carrier incentives every year. Since the very beginning of the iPhone.

The truth is after 2 years any phone is falling apart, especially the battery. This has not changed.
And if you hold you phone for 3 years you are really pushing it, and you will be missing out on a ton of good stuff.
4 years? Forget about it, unless you are the most basic of all users.

I see no reason NOT to upgrade every 2 years or even every year. If you buy an iPhone for $650 and after 2 years get $300 for trade in you are literally only paying 50 cents a day for your phone. Or $15 a month. Tell me what other device do you use EVERY DAY, 12 hours a day, 365 days a year?  

Its crazy that people are willing to spend $500 a year on Starbucks coffee and not $200 a year on a smartphone. Makes ZERO sense.

yes, carriers have incentives but I've not seen anything to the likes of $650 on a trade in.

Define "use"? I wouldn't say I "use" my phone 12 hours a day, it's sits on my desk or my table at home most of the day. I make a few calls, text, get mails and every once in a while take pictures. So I don't actually use it anywhere near 12 hours a day. Based on my own personal usage, there's no reason why I wouldn't expect it to be working just fine after 2 years.

It's not loaded up with 200 apps with all types of background activity and I don't watch hours of Netflix on it so why shouldn't I get 2+ years out of it? I think the advancements made on devices are intriguing but, when I think about how much it will actually impact my day to day and if it's worth the cost, it's usually not worth it for me to spend the money.

My own personal choice would be to save the money on the phone and put it towards a new, updated TV. I use my TV a hell of a lot more and appreciate a beautiful big screen on a TV far more than anything offered on a smartphone.

thedba

sog35 said:

I don't understand why people don't upgrade their phones at least every 2 years.

Waiting 3 or 4 years to upgrade is DUMB. Unless you are totally desperate for money and can't even buy 3 meals a day, there really is no reason not to upgrade every other year.

Cost of getting an iPhone every 2 years:

1. Buy iPhone for $650
2. After 2 years sell iPhone for $300
3. Total cost of iPhone for 2 years was $350
4. Comes out to less than 50 cents a day, $15 a month, $175 a year

I mean seriously. 50 cents a day!  For something you use 12+ hours a day, every day. You are basically paying less than 4 cents an hour to use an iPhone. Go show me something else that gives so much value for such a cheap price.  People pay $6 for a cup of Starbucks coffee that is gone in 10 minutes.

So lets say you hold your iPhone for 3 years. How much do you actually save?

1. Buy iPhone for $650
2. After 3 years sell iPhone for $200
3. Total cost of iPhone for 3 years is $450
4. Comes out to 41 cents a day

So to save LITERALLY 9 cents a day you are willing to hang on to an out dated phone? Really? NINE CENTS A DAY you are willing to sacrifice a ton of extra features, slower CPU, and a battery that is half way into the grave? Nine. Cents.

Or if you hold onto the phone for 4 years. You will get about $100 for trade in. That's 38 cents per day.

So you are willing to have an ANCIENT phone that won't even run the latest version of iOS with a battery that dies in 6 hours?  To save 12 cents a day?  TWELVE CENTS!!!! Come on. Get real.


Now if you are in poverty condition I understand wanted to save 9 cents a day or 12 cents a day to hold on to an old iPhone. But for the rest of us it makes ZERO sense, or CENTS.  Upgrading every 2 years is SMART. Trying to save a few pennies a day for a lesser experience and losing productivity is DUMB.

That's like saying you're the only one who knows what they're doing. 

maestro64

sog35 said:

lifewave98 said:

sog35 said:

I don't understand why people don't upgrade their phones at least every 2 years.

Waiting 3 or 4 years to upgrade is DUMB. Unless you are totally desperate for money and can't even buy 3 meals a day, there really is no reason not to upgrade every other year.

Cost of getting an iPhone every 2 years:

1. Buy iPhone for $650
2. After 2 years sell iPhone for $300
3. Total cost of iPhone for 2 years was $350
4. Comes out to less than 50 cents a day, $15 a month, $175 a year

I mean seriously. 50 cents a day!  For something you use 12+ hours a day, every day. You are basically paying less than 4 cents an hour to use an iPhone. Go show me something else that gives so much value for such a cheap price.  People pay $6 for a cup of Starbucks coffee that is gone in 10 minutes.

So lets say you hold your iPhone for 3 years. How much do you actually save?

1. Buy iPhone for $650
2. After 3 years sell iPhone for $200
3. Total cost of iPhone for 3 years is $450
4. Comes out to 41 cents a day

So to save LITERALLY 9 cents a day you are willing to hang on to an out dated phone? Really? NINE CENTS A DAY you are willing to sacrifice a ton of extra features, slower CPU, and a battery that is half way into the grave? Nine. Cents.

Or if you hold onto the phone for 4 years. You will get about $100 for trade in. That's 38 cents per day.

So you are willing to have an ANCIENT phone that won't even run the latest version of iOS with a battery that dies in 6 hours?  To save 12 cents a day?  TWELVE CENTS!!!! Come on. Get real.


Now if you are in poverty condition I understand wanted to save 9 cents a day or 12 cents a day to hold on to an old iPhone. But for the rest of us it makes ZERO sense, or CENTS.  Upgrading every 2 years is SMART. Trying to save a few pennies a day for a lesser experience and losing productivity is DUMB.

You remind of the dude who performed cost analysis for everything we did in the office.   We found him annoying but appreciated what his numbers really portrayed. 

Numbers tell the truth.

Some people fell like they are saving a ton of money by holding onto a phone for 3 or 4 years. The reality is they are saving very little or sometime even LOSING money because of lack of warranty coverage and loss of productivity (slowing apps, and low battery life)

If you own an iPhone for 2 years it costs about 48 cents per day.
$650 less $300 trade in = $350 cost divided by 2 years = 48 cents per day

If you own an iPhone for the 3rd year it will cost you 27 cents a day for the third year.
$650 less $200 trade in = $450 cost divided by 3 years = 48 cents per day first 2 years, then 27 cents for 3rd year.

The 4th year will also cost you about 27 cents a day.

So is it REALLY worth saving a mere 20 cents a day to carrying around a dinosaur phone that is much slower, has a battery that last 50% less? Also remember that the old phone won't be under warranty, so you could lose 100% of your trade in with an accident. Then you save ZERO money. If you buy new phones every 2 years, you will be covered by warranty 50% of the time. If you keep older phones you will only be covered 33% or 25% of the time.

So switching phones every 2 years versus every 3 or 4 years only cost about $70 more a year.

$70 a year. That's it. That's basically a week's worth of Starbucks for many people. 

The problem is most people don't take into consideration:

1. The depreciation of the phone and trade in value. They forget that their phone is losing value while keeping it 3 or 4 years.
2. Don't take into consideration warranty coverage of the 1st year of a new phone
3. Don't take into consideration a battery going down hill in year 3 or 4. But then they say 'I can just replace the battery for $100'. Guess what? $100 is MORE than the amount you save sticking with an old phone.

4. Don't take into consideration the loss of productivity from older/slower devices. If a new phone saves me 10 minutes a week, it pays for itself.

You're talking High Finances to most people, No one makes purchase decisions this way. This is also why the mass majority of people in the world buy cheap phones or take the free on contract phones. If they actually ran the number and understood the real costs they are paying they most likely would make a different decision.

I agree with your point, some times it is better just to keep upgrading, had a friend who use to do that with his macs, sold them every year with installed software and most times he got back what he paid for in hardware and always had a new computer.

However, you have to consider having that payment all the time as well. Its like buying a car, do you keep it past 100K mile and pay for maintenance or not. I have done it both ways, and I have done the NPV analysis and most times keeping the car as long as possible and as long as the costs to operate do not go too high is better than replacing with new and always having that car payment. But you have to be investing the money otherwise for it to really make sense. Sometime I am not interest in having the payment when what I have does the job. Trust me I have plenty of money but I pick and choose what I want to afford and make decision on whether to pay outright or take the payment plan.

BxBorn

sog35 said:

BxBorn said:

sog35 said:

BxBorn said:

Carrier incentives of $650 on an iPhone 6 or 6s is probably driving a lot of 7 sales. I bought 2 because of the incentive. My wife and I each had a 6 so it was a no brainer to get the 7 for $100 each. However, had there been no incentive, we'd be riding the 6 until it fell apart.

There are carrier incentives every year. Since the very beginning of the iPhone.

The truth is after 2 years any phone is falling apart, especially the battery. This has not changed.
And if you hold you phone for 3 years you are really pushing it, and you will be missing out on a ton of good stuff.
4 years? Forget about it, unless you are the most basic of all users.

I see no reason NOT to upgrade every 2 years or even every year. If you buy an iPhone for $650 and after 2 years get $300 for trade in you are literally only paying 50 cents a day for your phone. Or $15 a month. Tell me what other device do you use EVERY DAY, 12 hours a day, 365 days a year?  

Its crazy that people are willing to spend $500 a year on Starbucks coffee and not $200 a year on a smartphone. Makes ZERO sense.

yes, carriers have incentives but I've not seen anything to the likes of $650 on a trade in.

Define "use"? I wouldn't say I "use" my phone 12 hours a day, it's sits on my desk or my table at home most of the day. I make a few calls, text, get mails and every once in a while take pictures. So I don't actually use it anywhere near 12 hours a day. Based on my own personal usage, there's no reason why I wouldn't expect it to be working just fine after 2 years.

It's not loaded up with 200 apps with all types of background activity and I don't watch hours of Netflix on it so why shouldn't I get 2+ years out of it? I think the advancements made on devices are intriguing but, when I think about how much it will actually impact my day to day and if it's worth the cost, it's usually not worth it for me to spend the money.

My own personal choice would be to save the money on the phone and put it towards a new, updated TV. I use my TV a hell of a lot more and appreciate a beautiful big screen on a TV far more than anything offered on a smartphone.

You miss the point. 

You do use your phone 12 hours a day, because at any moment you may receive an emergency phone call or text. Or a super important email from your employer. So you'd rather save 9 cents a day instead of getting a current phone? Well that's your decision, but IMO that is not a wise move unless your phone usage is like a feature phone user.

As far as incentives, you need to read the fine print:

1. You need to TRADE IN your iPhone6/6+ to get the 'free' iPhone7. Those devices are worth at least $300-$400 each
2. Then you need to sign up for TWO YEARS on an expensive plan

This basically the same thing as what the carriers were doing with the $199 iPhone 2 year subsidy. But instead of charging you $199 they take your phone that is worth MORE than $199 from you.

So the incentives THIS YEAR are actually WORSE than before.

In my case I could get a 'free' iPhone7 from Tmobile. But that would mean signing up to a plan that cost $40 more a month than what I currently have. So no the incentives are not all that great. They are basically giving you $200-$300 more for your trade in than market price, but then they get that $300 back by forcing you to sign up for 2 years on an expensive plan.

2. Then you need to sign up for TWO YEARS on an expensive plan -> not true, my plan on Verizon is staying exactly the same. As a matter of fact, the line access fee for one line is going down from $40 to $20 because that line was still on a 2yr subsidized contract but eligible for an early upgrade (now on device payment plan). My bill will actually be a couple of dollars cheaper because the the two phones combined payment will be less than $20 thanks to the $650 on my trade in. Where as before the trade in, I had the $40 line access fee on one line, that's now reduced to $20 and combined, the device payment for both phones is around $14. The combined line access fee and 2 device payments comes to $34. That gives me an additional savings of $144 over the 24 months. I'm actually SAVING money - if I did the normal $300 trade in, it would be costing me MORE MONEY because while the line access fee would still be reduced to $20, the device payments would be more than doubled and my new bill each month there after would exceed the pre-upgrade bill by around $10 a month.

I did all of the math and that's why I jumped on the $650 incentive verse waiting for my phone to begin to show signs of failing before I upgraded.

You want to get a new phone every 2 years, knock yourself out but, don't speak to people as if your somehow this genius that knows so much more than everyone else. In my specific situation where I take care of the things that I own so that they do last and last reliably, I'm not going to upgrade and spend the money "just because". I have my cell phone, I have my work cell phone, I have a phone on my desk, I have email and iMessage on my iPad so I'm not concerned about ever being off the grid and unreachable in an emergency.

mpirate

Just ordered a matte black iPhone 7 at my local Verizon store. It arrives October 19, my plan stays exactly the same per the post above. Phone is 'free' if Imstay with Verizon for two years. A super deal!!! Ends at the end of the month however, so move quickly if interested.

SpamSandwich

rogifan_new said:

Cautiously optimistic isn't that reassuring, is it?

I'm sorry, but I finally have to block you despite occasionally making some good observations. Your negative spin on everything is no longer something I'm interested in.

prairiewalker

Based upon this user, I traded in my iPhone 6 for $200 to Apple and bought an iPhone 7 128GB.  It is superior to the 6. The Home 'button' is great to use after one day of ownership.  It's fast, stereo sound is better than the 6 and my iPad Air.  Screen is very sharp.  Camera with stabilization is excellent and the lens is much brighter.  Any iPhone 5 owner will see that the iPhone 7 is better than a 6 or 6s or SE.  Sales were busy on Sunday morning with a 30 minute line.