The iPhone X already accounts for over 2% of the iPhone active installed base. Singapore, Denmark, Switzerland and Japan are among the leading countries for iPhone X adoption, according to IHS Markit’s Senior Director of Mobile and Telecom, Ian Fogg.
“Countries where “Plus” model iPhones have been successful in the past have a strong correlation with initial levels of iPhone X adoption. Consumers in those markets have a greater interest in larger displays and high-quality dual cameras, as well as the willingness to pay the higher price a Plus model or iPhone X costs over regular-size iPhones.
Despite production constraints, in the markets where iPhone X has launched, initial uptake is very similar to adoption of previous iPhone flagship launches in the same launch period. This indicates good demand for iPhone X and is better than the rumoured supply.
In the US, iPhone X adoption after three weeks matched the adoption of iPhone 8 Plus and beat early adoption levels for both the iPhone 8 and 7 Plus. Only the iPhone 7 model had greater initial success. In Japan, initial iPhone X adoption was as good as or better than any recent iPhone launch, and matched the level of the iPhone 7″.
IHS Markit predicts that iPhone shipment volumes will show year-on-year grow every quarter for the next four quarters, and that 88.8 million iPhones will ship in the fourth quarter of 2017, the greatest number of iPhones ever shipped in one quarter. Fogg concluded:
“iPhone X represents a shrewd strategy from Apple. In a maturing smartphone market, consumers may choose to buy replacement smartphones less often. If so, the higher price of the iPhone X means Apple could gain similar revenue levels and profits at lower shipment volumes. If Apple can increase unit shipments instead, then iPhone X will drive significantly higher iPhone profits”.
