USA TODAY International Edition
X may be in short supply until new year
IPhone production delays, pent-up demand to blame
LOS ANGELES The next iPhone is the most coveted new technology of 2017, and it’s going to be very hard to come by.
Production delays and pentup demand from early adopters will cause the phone to sell out within an hour or two when it goes on presale on Apple’s website Oct. 27, analysts say. Apple says the phone will be in stores Nov. 3, and analysts expect long lines and not much supply.
The cheaper, slightly less fancy new iphones, the 8 and 8 Plus, went on sale over the weekend, but consumer interest was less than in prior years. Consumers are holding out for the X, which starts at $999 and has a redesigned, edge-to-edge 5.8-inch OLED screen and the ability to unlock the phone with facial features.
“We believe slow carrier promotions and relatively modest feature upgrades to the 8 are shifting demand to the X, which is a positive for Apple,” says Jeffrey Kvaal, an analyst for Instinet.
Many consumers won’t find the X in stock until January at the earliest, says Gene Munster, a tech investor and analyst with Loup Ventures in Minneapolis.
“Sometime in the first quarter,” adds Jan Dawson, an analyst with Jackdaw Research.
“A good three-four months until the X is in wide supply,” Tim Bajarin says.
Apple historically has had supply issues with new phones when they are released, but issues with the X go further. It’s using more new technology features that haven’t been ramped up to Apple style mass production, such as the OLED screens and facial mapping modules, Bajarin says.
The main culprit is OLED. As smartphones have become better video devices, OLED (organic light-emitting diode) represents the next step in display technology because it delivers wider and richer colors, improved contrast and better viewing angles than LCD. Additionally, according to The Wall Street Journal, Apple is facing shortages on certain parts that work to scan faces of users to unlock the phone.
Apple typically sells as many as 75 million iphones (both new and older models) in the holiday quarter. It will have 10 to 12 million iPhone X units produced by the end of the year, but that won’t be enough to satisfy demand. “This is the hottest iPhone since the first one because of all the new technology,” Bajarin says.
Dawson says the biggest benefactor will be the iPhone 8 and 8 Plus, which start at $699 and $799. “When they see the lines for the X and that it won’t be available for Christmas, most will just buy the 8 models,” he says.
But there’s only one all-new, re-designed iPhone, and it’s going to be at the top of many lists.
“It’s the 10th anniversary iPhone,” Bajarin says. “It really represents something significant and different. And don’t underestimate the cool factor and status symbol this will drive, especially in places like Saudi Arabia and China.”
Apple declined to comment.