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Survey Suggests Higher Demand For iPhone 8 And X, But Brace For Short Lines

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Survey Suggests Higher Demand For iPhone 8 And X, But Brace For Short Lines

Investors shouldn't necessarily be concerned with recent reports that Apple Inc. (NASDAQ: AAPL)'s new iPhone 8 is being met with mixed demand signs, at least according to Gene Munster.

Munster, the notable Wall Street analyst turned venture capitalist and co-founder of Loup Ventures, oversaw a survey of 388 consumers across the U.S. to gain a better understanding in to the purchasing intention of Apple's consumers. The survey found that of those who will be buying a new iPhone next year, 25 percent of people will buy the higher end and pricier iPhone X and 39 percent will buy the iPhone 8 or iPhone 8 Plus.

Based on the survey results, Munster is working under the assumption that 20 percent of all iPhone units sold next year will consist of the iPhone X. The iPhone 8 and 8 Plus will each account for 25 percent of the mix.

"Said another way, the survey suggested 64% of iPhones in the next year will be either the iPhone X, iPhone 8, or 8 Plus, compared to our current model of 45%," Munster wrote. "While we are encouraged by this survey, we are keeping our iPhone mix estimates unchanged to err on the side of conservatism."

'Annual Pilgrimage'

Munster and his team will be making their "annual pilgrimage" to multiple Apple retail stores to evaluate the lineup and more importantly, survey the customers. While the rise of e-commerce has resulted in decreasing lineups and major constructions are underway at the 5th Avenue New York store, it would be a mistake to correlate shorter lines with poor iPhone sales.

Finally, Munster is expecting Apple's iPhone unit growth for this cycle to be 9 percent versus just 3 percent for fiscal 2017.

Related Links:

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Rosenblatt Suggests Apple iPhone 8 Preorders Are Weak; Users Holding Out For iPhone X?

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