Supplier checks in China suggest that orders for the iPhone 7 have been stronger than they were for the iPhone 6S, although without any rush orders.
According to Goldman Sachs’ Donald Lu, Digitimes reported on September 28 that Apple Inc. AAPL had increased its 16nm orders at Taiwan Semiconductor Mfg. Co. Ltd. (ADR) TSM in Q4 2016.
The analyst expects seasonal correction to depend on the iPhone 7 sell through, given that Apple is expected to have built more iPhone 7 models than iPhone 6S during H2 2016.
“Our checks at Taobao, stores, and official channels of telco operators indicate that iPhone 7 Plus is supply constrained, but that supply/demand of iPhone 7 is sufficient,” Lu mentioned, while pointing out that China represented 23 percent of Apple’s sales, making it the second largest market after the Americas.
Strong Demand
“Staff at Apple’s flagship store in Sanlitun, Beijing commented that they saw much stronger demand for iPhone 7/7 Plus than iPhone 6s as customers are attracted to the dual cameras in the Plus model as well as the waterproof and dust-resistant features,” Lu stated.
The analyst also noted that there seemed to be greater demand for the jet black model, although stock inventory was lower and the models were selling at a premium to the recommended retail price on Taobao.
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