iPhone 7 Outselling iPhone 8, Channel Checks Reveal

Tyler Durden's picture

According to a surprising, and not altogether pleasant for Tim Cook and AAPL shareholders new report by KeyBanc Capital Analyst John Vinh, channel checks have revealed that Apple's older iPhone 7 models are outselling the recently launched iPhone 8 ahead of the early November debut of the premium iPhone X.

As traditionally new editions of the iPhone have sold quickly as fans queue for the latest upgrade, this time it's clearly different as pent up demand for the iPhone X is clearly cannibalizing sales, and the surveys add to signs that the iPhone 8 is not proving as popular as its predecessors. A chronological breakdown of iPhone features by generation courtesy of Nomura is shown below.

"Many respondents indicated that a meaningful portion of customers are buying iPhone 7 in lieu of the new iPhone 8, given the lack of significant enhancements in the new phone," Vinh wrote in his research report, which relied on channel checks in the United States and United Kingdom.

Apple last month introduced the iPhone 8 and iPhone 8 Plus, which resemble the iPhone 7 line but have a glass back for wireless charging. The iPhone 8 starts at $699 in the United States, higher than where its predecessor launched while the latest price of the cheapest iPhone 7 retails from $549 after a price cut.

A comparison of the PCBs of the iPhone 7 and 8, respectively, is shown below.

"Feedback from stores indicate customers are waiting to purchase the iPhone X or to compare the iPhone X before buying the iPhone 8," wrote Vinh, who is rated four out of five stars by Thomson Reuters StarMine for his recommendation accuracy on the Apple stock.

Another reason for the slow uptick of the iPhone 8 could be the modest promotion by U.S. carriers, Vinh said. "While carriers continue to offer promotions for the new iPhone 8, they have been much more modest compared to the iPhone 7 launch last year," he wrote.

Meanwhile, as Apple bull hopes fall on the iPhone X, a key unknown factor is what the price will be. The much-anticipated iPhone X, a glass and stainless steel device with an edge-to-edge display, will start shipping from Nov. 3 with the 10th-anniversary iPhone priced from $999, Apple's most expensive mobile till date.

Meanwhile for those seeking more details on what one can find inside the iPhone 7 vs iPhone 8, the following comparison from Bloomberg should come in handy.

iPhone 7:

iPhone 8:

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The_Juggernaut's picture

But this one goes to 8.

YUNOSELL's picture

but 8 rucky number in China

Buckaroo Banzai's picture

"8" is the average age of boys that the faggot Tim Cook likes to molest.

NoDebt's picture

"Apple's older iPhone 7 models are outselling the recently launched iPhone 8 ahead of the early November debut of the premium iPhone X."

Is it just me or does anyone else think launching the new iPhone 8 only 3 months before the iPhone X always seem like a really fucking stupid idea?  

I mean, who the fuck would buy the 8?  Why?  Your snazzy new phone will be worth a tiny fraction of what you paid for it when the X launches 15 minutes after you bought the 8.

If somebody can explain to me why this was a good idea I'm all ears.

 

rpboxster's picture

They need a backup because the X is not going to be ready for primetime.

viahj's picture

the 8 is the last chance before facial recog is incorporated.  i went from the 6 to the 8 (i always skip a gen but with the increasing CIA enhancements, this is the end of the line for me)

In Ze No's picture

I am actually considering going to a beater phone when this smart phone dies.

The horrors, huh?

The thought of them shaking us down for the iprice of the instrument they'd hang me w if given the chance is increasingly pissing me off.

I have to constantly delete stuff I want on my phone due to all the junk software they prevent me from eliminating.  It's increasingly more difficult to think of this as "my" phone.

buttmint's picture

....APPLE is screwing itself, sad to state. I refuse to get invested into a pricey phone. I've been a fan of Nokia Windows Lumia phones. I just picked up a new

Microsoft Lumia 950 for $200. Not bad! Great phone, amazing camera and I added 200GB storage. Switches languages on the fly and does many things well.

Who woulda thunk Microsoft as the Underdog?

 

 

greenskeeper carl's picture

Yes. Pretty stupid. I just bought a new 6S to replace my 4 year old 5S. Another 3 or 4 years I might step up to the 7.

hannah's picture

the 8 is the 'cheap' phone. people cant even afford the 8 much less the 10.....no more cash or credit. people cutting cords and smart phones and cable..........people are broke

BabaLooey's picture

iCrapple7 out sharting iCrapple 8...outhouse is stinkin

Badsamm's picture

Warning, this is a test.
I'm an iPhone 6, can you hear me?
Ok. Bye.

bobert727's picture

yeah but just wait until it goes to 11

Dr. Engali's picture

Pent up demand for the iPhone X is cannibalizing sales? It’s more like for a few hundred dollars moar you get a wireless charging. Seriously, who gives a crap?

RafterManFMJ's picture

Don’t forget, it’s also likely a more brittle phone.

Meh, I’m reading about an OLED iPhone X variant to debut in 2018 with a 6.46-inch OLED screen; I’ll wait for that. Screen size and resolution is all that matters at this point.

Vinividivinci's picture

moar stock buybacks.

SoDamnMad's picture

Sell, Mortimer SELL

ipso_facto's picture

'An all-new galss design'

Does this mean now BOTH sides of the iPhone can crack and disable the phone?

yellowsub's picture

The 4S was the last model that was glass front and back and it's stupid they're going back to that flawed design.  

They should be making their phones more indestructible not easier to break.

 

djsmps's picture

I bought an iPhone SE two months ago for around $140 from Metro PCS. New. And the price of the plan is half of what I was paying with Sprint. I swore I'd never buy an iPhone, but the price was right. I could care less about an iPhone 8 or X.

activepatriot's picture

Samsung Galaxy is better and cheaper

NoDebt's picture

Agreed.  And you don't have to worry yourself wondering if the NSA can break into it or not.  Because you know for sure they can so you just move on and enjoy the phone.  

That's what I use.  

TheSilentMajority's picture

An unprecedented profit warning from Apple is coming very soon.

Watch this space.

Buckaroo Banzai's picture

Does that schematic really read "Diversity Receive Module"???

TomCruiseLaughingHysterically.jpg

VZ58's picture

Even the most ardent Apple zombies are realizing that they are being fleeced by their God. More shit no one needs...

shear's picture

Good news for the stock, up 1.4% today.

I think Apple knew uptake of the 8 would be low and that the X would take a lot of the new sales. This is bullish for Apple and has the potential to demonstrate that Apple's pricing power is strong.

Manipuflation's picture

I used 26 MB of data plan on my Android so far this month and I don't even use it outside of my wi-fi.  It makes beep sounds though.  I bet the Apple phones also make beep sounds.  Nothing but mobile ads.

Yay.

TalkToLind's picture

This phenomena actually has a name:  it's called the Free Market System.  Yep, $1000 for a cell phone?  Fuck that shit.

RedDwarf's picture

I've no interest in phones the size of tablets.

HenryKissingerZuckerberg's picture

I've no interest in phones the size of tablets.

I have been told that is called phablet in snowflakish

hanekhw's picture

The triumph of common sense is a beauty to behold isn't it?

Vardaman's picture

Can't think of a serious merchant or manufacturer who would not be glad to sell his stale inventory off on his terms.  The "gotta hava story!!!!" media needs this to be a disaster.  Long term view, they will sell out of 7s and people will buy 8s.  There are always people who have to have "the latest and greatest" and they are a subset.  I'm no Apple fan, but I really don't think they have a problem here in the long term, other than the fact that eventually, there's nothing more to add to a smartphone that even the geekiest geek really wants at any price.

Vardaman's picture

I myself am carrying a more than three year old Lumia 1520 that still works just fine.  Now that MSFT has killed Windows Mobile 10, I'll probably go to a Galaxy Note 8 when the 9s come out.  And save a few samoleans...

Lokiban's picture

IBored, IHyped, IFailed

IGobacktoSamsung

snblitz's picture

I traded in my Samsung Galaxy S8 for a Motorola G5s plus.

The Motorola G5s plus can be had for around $200 new, unlocked supporting all 4 major US carriers and the rest of the world

I am at a loss why anyone would spend more for a smart phone.

bobert727's picture

But what about the 11, 12, and 13? Aren't they suppose to be super nifty cool? I'm waiting and waiting and waiting

Wannabee's picture

I'm waiting for iPhone 21. Don't know when it will be released but I'm sure by then my Motorola Startac will need an upgrade

koan's picture

I'm reminded of a scene from the movie "Brazil" where they are talking about the new features on their consoles.

jin187's picture

Still have a Galaxy S4. It cost me the same 5 years ago as iPhone whatever does now. Neither of them can replace my PC. GS4 still does all the phone stuff I want it to do, and does it well. Sprint charges me $30 a month for my plan because I stuck it to them with the old indefinite "cut your bill in half" promo. Why would I ever upgrade? 12G?

az_patriot's picture

The iPhone has got to be the most overhyped and overpriced smart phone on the market.  And we're all tiring of the constant stream of ever-more-expensive new models and the attempts by Apple to make people feel like their phone is "old" and "should be replaced".  I've got a three year warranty on my iPhone -- now, why the HELL would I throw the warranty away just to buy another phone, and another warranty, all over again??!??  

TalkToLind's picture

But this year's model has a slightly different shape compared to the last model.  And there's some new glass somewhere on the phone's body.  Now cough up some money!

insanelysane's picture

The bloom is off the rose as they say.  Nobody gives a rat's ass anymore what phone a person is carrying.  A few years ago the sheeple would be envious that someone had the iPhone n+1 and they only had the n.  The cycle is about done.

One of these is not like the others..'s picture

Not true. I have a ridiculously small phone (about the size of a usb stick) which when people realise it's a phone, (the led winks every so often or it rings) definitely has the (unexpected) wow factor!

Given the 20$ price tag and the fact that as a phone it's been incredibly good at not dropping calls, I think I'll be picking up a spare whilst I can still get one.

TalkToLind's picture

Ebay is great! You can find last year's Android flagship models, unlocked for $125 - $200.  I don't know about you, however I insist on being debt free -- which is difficult when you're buying $1000 cell phones every 6 or 12 months.

dchang0's picture

What's the point of buying any new iPhone when Apple still hasn't solved the problem of websites being able to hack Javascript to redirect you to shady apps in the iOS App Store?

It happens often enough to make me question whether I'm actually getting the full use of my iPhone.

And Apple shut down a petition I started on their forum to get Apple to address this by allowing end users to flag apps in the App Store for deceptive marketing practices. Hit 'em in the wallet, and they'll stop. But since Apple gets a large commission of every app sold, they don't mind if crooks are selling apps.

SweetDoug's picture

'

'

'

All my buddies have the 4 and I've never heard them bitching that they can't make a call. Or instagram. Or text. Or...

 

I don't even own one. That is JUST how powerful I am.

JO

V-V

silverer's picture

With a bunch of decent full size Android phones under $200.00 new, I can't see how Apple's $1000. phone can deliver 5x the value. Anybody care to make the case?