Apple forecasts that strong demand from iPhone 11 and iPhone SE 2 will help iPhone sales increase by 10% in the first quarter of next year

Analyst Ming-Chi Kuo makes another more optimistic forecast on Apple's business situation. Accordingly, iPhone sales will increase by 10% in the first quarter of 2020, mainly due to strong demand of iPhone 11 and the launch of iPhone SE 2.

During the quarter of the holiday week, Kuo expects 70 million to 75 million shipments of new iPhones (including iPhone 11 and iPhone 11 Pro), and could even be higher without supply issues.

Along with optimistic reports from other sources, Kuo believes Apple will increase orders from several suppliers due to strong demand from new phones. The increase in shipments mainly came from products sold in Q1 2020.

More specifically, this analyst expects Apple to ship about 40 million iPhone 11 Pro and iPhone 11 Pro Max before the start of the new year. That's lower than the 43 million iPhone XS and iPhone XS Max that Mr. Kuo believes Apple sold during in the same period last year. This is explained by the tightening of supply in the production of iPhone 11 Pro, deliveries are delayed by 2 to 3 weeks.

However, Kuo also believes that the cheaper iPhone 11 series will beat iPhone XR sales in 2018. Kuo predicts that the iPhone 11 will ship from 37 million to 40 million units, much higher compared to the 25 million iPhone XR sold in the same period last year.

One factor that contributed to this was higher customer demand due to better prices, but another factor was that it was not until the end of October 2018 that the iPhone XR began to sell while the iPhone 11 sold a month earlier than its predecessor.

Kuo believes a new device, the "iPhone SE 2" will go on sale in early 2020, when it will be part of Apple's optimistic quarterly sales growth forecast. In a previous report, Mr. Kuo said the new iPhone SE 2 will have an exterior design similar to the iPhone 8 but upgraded with internal hardware such as using the A13 processor.


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