Tuesday, January 23, 2018

Apple Shipped 29M iPhone X Units in 2017, Older Devices Remain Popular

As Apple continues to the battle with the throttling fiasco, the first sales estimates for the iPhone X have made their way onto the internet.

According to technology analyst firm Canalys, Apple sold 29 million iPhone X handsets in the fourth quarter of 2017 – and 7 million of them were bought by Chinese consumers.

The company described the sales as “impressive”, especially considering the price of the phone. It believes that the success of the handset comes down to two factors.

  1. First of all, consumers have been able to finance the X, meaning they didn’t have to pay a four figures for the handset. This has created flexibility for buyers.
  2. And the second factor is that many people have found ways to offset the cost, such as trading in older handsets. They were clearly won over by the X’s features, too.

One major benefit to Apple is that customers are increasingly realizing the residual value of their old smartphones, opting for trade-in programs to offset the high price of the iPhone X,” said Canalys.

The company said that sales of the SE, 6s and 7 were also respectable, suggesting that Apple has implemented a successful strategy for its mobile devices.

TuanAnh Nguyen, an analyst at Canalys, said these phones are still going strong: “The older handsets are still popular with iPhone users looking for value for money.”

Apple is looking at its best performance to date, all thanks to the massive changes it made to its portfolio in Q3. This strategy has hedged Apple’s risk as it upgrades the iPhone, in both design and user experience.

While new technologies, such as Face ID and bezel-less displays, help to justify the US$999 price tag and maintain competitiveness with Samsung, Huawei and Google, having a larger portfolio allows Apple to meet its overall shipment targets, and protect its market leadership in the premium segment.”

Ben Stanton, analyst at Canalys, said these sales numbers are impressive for such an expensive smartphone. But they’re lower than initial estimates.

“The iPhone X performance is impressive for a device priced at US$999, but it is slightly below industry expectations,” he said in a statement.

“Apple struggled with supply issues in early November, but achieved a massive uplift in production in late November and throughout December. This helped it meet and even exceed demand in some markets by the end of the quarter.”



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