Short lines aren't predictive of the iPhone XR's long-term prospects, analyst clarifies
Small or non-existent waiting lines for the iPhone XR at Apple stores don't mean the product isn't selling well, Gene Munster observed on Friday, tackling the issue of launch demand for the second time in a week.
Image Credit: Lexy Savvides on Twitter
"Our typical launch day line counts reveal much shorter lines for iPhone XR," said Loup Ventures' Gene Munster. The claim backs up anecdotal evidence on Twitter and elsewhere, noting that even at Apple Union Square in San Francisco, launch day foot traffic was underwhelming.
Munster pointed out that early adopters willing to wait in line most likely bought the iPhone XS in September, and that short online delivery times don't give people much reason to go to a store. U.S. delays for the XR are currently averaging under two weeks.
The XR will ultimately triumph as the most popular iPhone in 2019 because of its value, the analyst argued.
"Apple's most loyal user base will buy the newest, largest, most expensive models without even seeing the devices," he said. "The average consumer will make a more rational buying decision, which is where the iPhone XR wins." The phone starts at $749, $250 less than an XS, but still has many of the same features such as an A12 chip, an edge-to-edge display, and Face ID.
Loup Ventures is calling for the XR to represent 38 percent of iPhone sales in the coming year, versus just 9 percent for the XS and 12 percent for the XS Max.
Munster's position echoes that of TF Securities analyst Ming-Chi Kuo, who also contended that many of the people buying the XR may be doing so through carriers rather than Apple, especially since they can sometimes get perks that way.
Image Credit: Lexy Savvides on Twitter
"Our typical launch day line counts reveal much shorter lines for iPhone XR," said Loup Ventures' Gene Munster. The claim backs up anecdotal evidence on Twitter and elsewhere, noting that even at Apple Union Square in San Francisco, launch day foot traffic was underwhelming.
Very short line to buy the #iPhoneXR in San Francisco this morning. So quiet compared to #iPhoneXS lines pic.twitter.com/m45nzP17v7
-- Lexy Savvides (@lexysavvides)
Munster pointed out that early adopters willing to wait in line most likely bought the iPhone XS in September, and that short online delivery times don't give people much reason to go to a store. U.S. delays for the XR are currently averaging under two weeks.
The XR will ultimately triumph as the most popular iPhone in 2019 because of its value, the analyst argued.
"Apple's most loyal user base will buy the newest, largest, most expensive models without even seeing the devices," he said. "The average consumer will make a more rational buying decision, which is where the iPhone XR wins." The phone starts at $749, $250 less than an XS, but still has many of the same features such as an A12 chip, an edge-to-edge display, and Face ID.
Loup Ventures is calling for the XR to represent 38 percent of iPhone sales in the coming year, versus just 9 percent for the XS and 12 percent for the XS Max.
Munster's position echoes that of TF Securities analyst Ming-Chi Kuo, who also contended that many of the people buying the XR may be doing so through carriers rather than Apple, especially since they can sometimes get perks that way.
Comments
XR 38%
XS 9%
XS Max 12%
I know there are other iPhones in the mix but are they really going to make up 41% of iPhones sold ??
Gene Munster this week, after getting tarred and feathered online by smarter people: Of course shorter lines don’t mean anything related to the iPhone XR’s success, in face we predict it will be the best-selling single model of them all!
I really can’t imagine why analysts have such a bad reputation ... 🙄
The Analysts are off base in most of their projections. They don't have much to do and make it up.
Well, Well, If it isn't Gene Munster making predictions again.
No way of knowing at this stage of the game. Gene Munster how did you derive at your numbers??? or are you merely echoing Ming Chi Kuo