Kuo says demand for the iPhone 7 got a boost thanks to the exploding Galaxy Note 7 and interest in Apple's dual camera feature.
A KGI survey found that Jet Black was the most popular color option at 30-35% of pre-orders globally and 45-50% of pre-orders in China. The 128GB version was most popular storage size and demand was about equally split between the 4.7-inch and 5.5-inch models.
Kuo is increasing shipment estimates from 60-65 million to 70-75 million but predicts that they will still be lower than the iPhone 6s.
1. The iPhone 7 Plus shipment volume outlook is better than expected because of the recall of Samsung’s (KR) Galaxy Note 7 due to exploding batteries and positive reception of the iPhone 7 Plus’s dual-camera feature; we believe the recent share price gains for Apple and its supply chain members mean that these positives have already been priced in.
2. We forecast iPhone 7 2016 shipment volume will be lower than that for the iPhone 6S in 2015.
3. The initial iPhone 7 supply shortage was due to better-than-expected demand for the iPhone 7 Plus and undersupply of jet black casings caused by a poor production yield rate of 60-70%; overall demand is still weaker than that for the iPhone 6S.
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