iPhone 7 Outselling iPhone 8, Channel Checks Reveal

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:

Comments

NoDebt YUNOSELL Mon, 10/16/2017 - 11:07 Permalink

"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. 

In reply to by YUNOSELL

In Ze No viahj Mon, 10/16/2017 - 12:39 Permalink

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.

In reply to by viahj

buttmint In Ze No Mon, 10/16/2017 - 14:37 Permalink

....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 newMicrosoft 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?  

In reply to by In Ze No

Dr. Engali Mon, 10/16/2017 - 10:46 Permalink

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?

djsmps Mon, 10/16/2017 - 11:01 Permalink

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.

shear Mon, 10/16/2017 - 11:11 Permalink

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 Mon, 10/16/2017 - 11:13 Permalink

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.

Vardaman Mon, 10/16/2017 - 11:46 Permalink

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.

snblitz Mon, 10/16/2017 - 12:13 Permalink

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

jin187 Mon, 10/16/2017 - 12:38 Permalink

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 Mon, 10/16/2017 - 12:40 Permalink

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??!??  

insanelysane Mon, 10/16/2017 - 12:45 Permalink

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 i… insanelysane Mon, 10/16/2017 - 14:54 Permalink

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.

In reply to by insanelysane

TalkToLind Mon, 10/16/2017 - 13:14 Permalink

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 Mon, 10/16/2017 - 14:23 Permalink

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 Mon, 10/16/2017 - 17:04 Permalink

'''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.JOV-V

silverer Mon, 10/16/2017 - 20:15 Permalink

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?