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Apple's new iPhones come in two sizes: iPhone XS, on the left, and XS Max, on the right.
- Demand for the larger and more expensive iPhone XS Max outpaces demand for the smaller iPhone XS, according to a research note from reputable analyst Ming-Chi Kuo.
- The largest iPhone XS storage configuration, 512GB, is also "subject to a serious shortage," according to the research.
- In terms of color, gold and "space grey" iPhones seem to be more popular than the silver iPhone XS models.
Demand for the larger and more expensive iPhone XS Max is far outpacing its smaller sibling, TF International Securities analyst Ming-Chi Kuo wrote in a note distributed on Monday.
Two new iPhones went on sale this past weekend, the iPhone XS and iPhone XS Max. Both are premium devices, with respective starting prices of $999 and $1099.
But the "Max" model with a bigger screen and starting price is way more popular, Kuo suggests.
From the note:
"We have determined that the demand for XS Max is better than expected, (3-4 times that of XS). The gold and space-grey colors are significantly more popular than the silver. 256GB is the most popular, and 512GB is subject to a serious shortage because only Samsung can currently ship NAND Flash well. We are positive that XS Max shipments will grow steadily in 4Q18 thanks to demand from Asia market and the gift season."
Kuo now believes that the XS Max will comprise a 5% to 10% larger proportion of iPhone XS shipments over the next two quarters. In total, Kuo predicts that Apple should ship 75 million to 80 million units of both phones in the second half of 2018, according to the note seen by Business Insider.
But the real "supercycle" may come when Apple releases the iPhone XR next month, which he believes could return the entire iPhone lineup to growth in the first half of next year, thanks to a $750 starting price that could entice people to upgrade from older iPhones. The new Apple Watch, the Series 4, also has strong demand, Kuo writes.
However, Apple's suppliers, Japan Display and LG, are having issues making enough displays for the iPhone XR, he warns.
Kuo is a well-respected analyst famous for accurately predicting Apple products before they're announced. His research is geared toward investors who want to know what's going on in Apple's Asian supply chain - some of his favorite stocks based on last weekend's launch include Largan, LG Innotek, Hon-hai, and Pegatron.