Citing carrier store surveys, broker KeyBanc Capital Markets said that the older iPhone 7 models of Apple Inc are outselling the iPhone 8 that was launched recently ahead of the debut of the premium iPhone X in early November.
Traditionally, new models of the iPhone have sold immediately as fans line up for the newest upgrade and surveys would add to signs that the iPhone 8 is not coming out as popular as its predecessors.
“Many respondents indicated that a meaningful portion of customers are buying iPhone 7 in lieu of the new iPhone 8, given the lack of significant enhancements in the new phone,” wrote John Vinh, a KeyBanc analyst in a client note.
Last month, Apple unveiled the iPhone 8 and iPhone 8 Plus, which are almost similar to the iPhone 7 line but features a glass back for wireless charging.
While the selling price for the iPhone 8 starts from $699 in the United States, the iPhone 7’s retail price starts at $549 after a price cut.
“Feedback from stores indicate customers are waiting to purchase the iPhone X or to compare the iPhone X before buying the iPhone 8,” recorded Vinh, who has earned four out of five stars from the Thomson Reuters StarMine for his recommendation accuracy on the Apple stock.
The much-anticipated iPhone X of Apple, a stainless steel and glass device with an edge-to-edge display, will begin shipping on November 3. The 10th-anniversary iPhone is valued from $999 – most expensive mobile of Apple to date.
Vinh said that another reason for the poor uptick of the iPhone 8 could be the modest promotion by carriers in the United States,
“While carriers continue to offer promotions for the new iPhone 8, they have been much more modest compared to the iPhone 7 launch last year,” wrote Vinh.
The surveys were performed by KeyBanc in the United Kingdom and the United States.
Apple was not available for comment.
The shares of the company were up 0.8 percent at $158.20 in early trading.