iPhone X price premium fears overblown, strong demand continues in U.S., China
New data collected from prospective iPhone buyers in China by an investment analyst suggests that demand for the 256GB iPhone X remains outstanding -- which will lead to a massive quarter for Apple.

Amit Daryanani from RBC Capital Markets compiled a detailed consumer survey in China. Of the respondents, 62 percent of the respondents were interested in buying the high-end iPhone X, versus 28 percent in the company's U.S. survey.
Additionally, the higher capacities for all iPhones were preferred, with 66 percent of the potential iPhone X buyers looking at the 256GB model. Additionally, 64 percent of the iPhone 8 family purchasers, and 75 percent of iPhone 7 buyers were looking at the highest storage capacities.
Daryanani believes that there will be a "stronger than anticipated mix shift" in the Chinese market, despite early concerns about the iPhone X price premium, Additionally, the quest for more storage will drive up average selling price for the device, possibly more than Wall Street's previous expectation.
In the U.S. market, Daryanani is still seeing strong demand for the iPhone X. As such, reports about wait times decreasing are seen to be more supply catching up with the very strong demand for the device, and less about any softening in demand for the phone.
Apple is predicting a blockbuster quarter. During Apple's last earnings conference call, Apple predicted between $84 billion and $87 billion in revenue, with gross margins between 38 percent and 38.5 percent.
For comparison, in the first fiscal quarter of 2017, Apple generated $78.4 billion in revenue. In the 2015 holiday quarter following the iPhone 6s release, Apple generated $75.9 billion. Apple cranked out $74.6 billion in the previous year that saw the large-screen iPhone 6 family launch.

Amit Daryanani from RBC Capital Markets compiled a detailed consumer survey in China. Of the respondents, 62 percent of the respondents were interested in buying the high-end iPhone X, versus 28 percent in the company's U.S. survey.
Additionally, the higher capacities for all iPhones were preferred, with 66 percent of the potential iPhone X buyers looking at the 256GB model. Additionally, 64 percent of the iPhone 8 family purchasers, and 75 percent of iPhone 7 buyers were looking at the highest storage capacities.
Daryanani believes that there will be a "stronger than anticipated mix shift" in the Chinese market, despite early concerns about the iPhone X price premium, Additionally, the quest for more storage will drive up average selling price for the device, possibly more than Wall Street's previous expectation.
In the U.S. market, Daryanani is still seeing strong demand for the iPhone X. As such, reports about wait times decreasing are seen to be more supply catching up with the very strong demand for the device, and less about any softening in demand for the phone.
Apple is predicting a blockbuster quarter. During Apple's last earnings conference call, Apple predicted between $84 billion and $87 billion in revenue, with gross margins between 38 percent and 38.5 percent.
For comparison, in the first fiscal quarter of 2017, Apple generated $78.4 billion in revenue. In the 2015 holiday quarter following the iPhone 6s release, Apple generated $75.9 billion. Apple cranked out $74.6 billion in the previous year that saw the large-screen iPhone 6 family launch.
Comments
Now comes the iMac Pro and those same critics are trashing it too. It’s not really a Pro machine because you can’t open it up and fiddle around inside, as if real professionals with deadlines have time to do that anyway. No one is going to buy it either, right? I can just imagine what will be said when the new Mac Pro is introduced next year. It will be more of the same from that crowd. And god forbid a new Mac mini is released next year. They will jump on that like flies on a bull's balls.
I think the naysayers and trolls have jumped the shark as they haven’t had anything new to say about Apple for years now. You can only predict failure so long until people start laughing at you. I put this crowd right up there with the deranged, self-taught theologians who regularly predict the end of the world and the coming of the Rapture. Next time, next time they’ll be right. No really, next time.
I have no doubt Apple will have a stellar quarter with revenues likely at the high end of their estimates. There certainly was a large market built up for a premium phone since Apple hadn't significantly redesigned the phone since 2014. The key will be the quarterly estimates for January-March. Wait times on the iPhone X are near zero in some of the major markets. Is this because of increased supply or satiated demand? If Apple doesn't forecast a similar percentage growth in same-quarter revenues and unit sales than the Jan-Mar quarter in 2015 then I think it will be a strong indication they have hit a plateau and are depending on increases in average selling price to drive revenue growth as opposed to increased market share.
Apple needs to get out of the 225 million units sold rut it has been in for the past three years. Prior to the 6 they saw regular double-digit market share increases, now it is basically flat. The iPhone X is going to need to sell a whole lot of units in the 2nd and 3rd quarters, and I've got my serious doubts there are a lot of buyers at this point for a $1,000+ phone that are still waiting this year.
It will be very interesting to see what Apple themselves predict for the next quarter. I don't think many of these analysts have any better information than the armchair CEOs on the message boards.
When it comes to Amazon, it's always a positive slant on how great the product is and how it will sell in the millions. With Apple, it's always the opposite. The AirPods were said to become a huge sales failure due to how ugly they were when put in people's ears. Anyone who spoke about iPhone X usually started with how it was TOO expensive for anyone to buy and that Apple was crazy for selling a $1000 smartphone. I know the HomePod will be claimed to be a huge failure because of how expensive it is (The Google Home Max costs more) and how stupid Siri is. Yes, everyone knows Apple is already too late to the virtual assistant party. Forget AppleWatch. NO ONE is going to pay for an overpriced AppleWatch when they can buy a Fitbit or Android Wear smartwatch for half of what Apple is charging for AppleWatch. Instant FAIL.
Anyway, from what I've read, it's Samsung having the problems moving their flagship smartphones as they have been cutting prices and offering rebates and freebies to move stagnant inventory. I'm really not sure why there are so many people who feel Apple doesn't know how to run a successful business after all these years. Is it stupidity or just stubbornness? Maybe just blind hate for a successful company? Why should the haters waste their time spreading lies? They should just keep their mouths closed and silently buy some non-Apple product which would be a far more practical way of protesting against Apple.
Apple has made possibly its most radical mobile strategic shift ever with the release of the 2017 iPhones.
The armchair CEOs that said that would never happen (mostly those who blindly defend Apple, whatever it does) clearly got that one wrong.
The presence of a 1,000 dollar phone in that context means very little. Even Huawei had 1,400 dollar phones (all sold out) a while before Apple.
The big risk for Apple (not for competitors) was if leaving a large spread of lower priced phones would eat into the top end.
You won't see any answer to that question until after the Christmas quarter.
The Porsche Design Huawei Mate 10 is a comical cash grab
Well.. sincerely thank you for making me feel much much better about my X price lol.
All of the above.
I always just blow these articles off...I'll wait for Apple to report the official numbers, not what someone got from suppliers and all of this other BS crap they come up with which we know isn't accurate at all. It never has been yet they always rely on it.