Despite Note 7 fires and carriers suggesting iPhone 7 sellouts, top Apple analyst Ming-Chi Kuo of KGI Securities isn’t entirely convinced that strong consumer demand will offset slowing shipments. In a note to clients obtained by AppleInsider, Kuo predicted 70-75 million iPhone 7 sales in 2016—lower than that of the iPhone 6s in 2015.
Kuo cautions that strong iPhone 7 sales are not “not entirely due to market demand” because carrier promotions inflated sales numbers and a larger amount of launch countries led to depleted inventories worldwide.
Both new iPhone 7 models launched in 28 countries versus 12 launch markets for the iPhone 6s lats September.
After conducting a survey, Kuo concluded that Jet Black is the most popular colorway accounting for 30 to 35 percent of preorders globally. In China, Jet Black iPhone 7 models accounted for 45 to 50 percent of preorders. In terms of storage, the 128GB model is currently consumers’ #1 choice.
The dual-camera feature in the iPhone 7 Plus has helped boost early shipments, he said.
Scarcity of Jet Black iPhones is due to challenges related to complex manufacturing processes required to give these phones their superior polish and shine. Specifically, a yield rate for Jet Black iPhones is currently about 60 to 70 percent.
T-Mobile CEO John Legere said that iPhone 7 preorders up to September 12 had been “like four times bigger than the iPhone 6.” In a curious reversal of its longstanding practice, Apple has declined to publicize opening weekend iPhone 7 sales.