With Apple's Higher-End iPhone 12 Models in such Hot Demand, sales are now forecast to Easily beat Quarterly Expectations
A pair of new Taiwan tech reports posted this afternoon confirm that the high-end iPhone 12 Pro and especially the iPhone 12 Pro Max are proving to be far more popular than previously expected and are currently out of stock globally.
According to industry analysis, Apple considered that the largest sales volume of the previous generation iPhone 11 was concentrated on mid-range models. Therefore, in the initial evaluation, the supply capacity was bet on mid-range and affordable models such as iPhone 12 and iPhone 12 mini.
Reportedly Apple did't expect high-end purchases to exceed expectations. Inaccurate forecasts led to insufficient initial supply.
The high-priced iPhone 12 Pro has been on the market for nearly a month, and the scheduled arrival time in many countries around the world is still as long as half a month or even more than a month. The mid-range iPhone 12 is generally available in Apple two largest markets, the United States and mainland China.
Industry insiders pointed out that the high-end iPhone 12 Pro series is mainly operated by Hon Hai. With Hon Hai’s years of experience, there should be no insufficient production capacity. The most likely reason is that the market’s demand for high-end new phones is far higher than Apple’s expectations, causing their supply chain to struggle to keep up with strong demand.
In a second Taiwan tech report posted today it's noted that "US brokerage Wedbush is optimistic that the iPhone 12 is entering the 'super replacement cycle' and is expected to repeat the sales of the iPhone 6."
The second report likewise reports that "From a supply chain survey, the demand for iPhone 12 Pro has increased significantly, indicating that large-size sales are hot; demand for iPhone 12 Pro Max is also very strong, and the high-end iPhone 12 product line is currently out of stock globally.
Wedbush further pointed out that consumers in mainland China and the United States have gradually increased demand for the iPhone 12. It is estimated that 80 million new devices will be shipped in the initial supply chain, and the sales volume will be revised up to slightly less than 90 million from the 75 million estimated at the end of October.
Looking forward to the fourth quarter, Hon Hai Chairman Liu Yangwei pointed out that the demand for new products from major customers is better than expected, and the current capacity utilization rate exceeds 100%.
This quarter's revenue continues to rise, with an estimated quarterly increase of 15%. The industry generally believes that Hon Hai’s 'new product for major customers' is the iPhone 12."