According to well-connected KGI Securities analyst Ming-Chi Kuo iPhone X shipments will be weaker-than-expected in H1 2018-- but the launch of larger-size iPhones should drive global Apple smartphone shipments for the rest of the year.
"We revise down Q1 2018 and Q2 2018 shipments of iPhone X to 18 million units and 13m units, respectively, lower than market consensus of 20-30m and 15-20m units," a KGI research paper obtained by MacRumors reads. "We expect iPhone X will go to end of life (EOL) around mid-2018 and that total life cycle shipments will be around 62m units, lower than our previous forecast of 80m units.
One reason for weaker-than-expected iPhone X demand is China. While Chinese customers like big smartphones, the notched design of the iPhone X remains incompatible with many apps popular in the country, leading to the impression it offers less usable screen space than the 5.5-inch iPhone Plus. Furthermore the iPhone X bears a hefty price tag, leading to less replacement demand.