“Reports of delays in Apple’s iPhone X production, combined with seemingly weak demand for iPhone 8, have put investors somewhat on edge,” Mark Hibben writes for Seeking Alpha. “The CEO of Rogers Communications (RCI) of Canada called demand for the iPhone 8 series ‘anemic,’ and this seemed to precipitate [yesterday’s] 2.37% drop.”

“A few days ago Reuters also reported that iPhone 7 was outselling iPhone 8 in the US, according to carrier surveys by KeyBanc Capital Markets. John Vinh of KeyBanc was quoted as saying, ‘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,'” Hibben writes. “I continue to be amazed at the lack of technical sophistication on the part of technology company analysts. As far as analysts like Vinh are concerned, if they don’t see a change in the screen, there is no change. iPhone 8 rolls with the A11 Bionic processor, new faster LTE modems, and first time ever (for iPhone) wireless charging. I would certainly call these significant enhancements.”

MacDailyNews Take: As we wrote on Monday:

KeyBanc analyst John Vinh obviously couldn’t analyze his way out of a wet paper bag.

iPhone 8 offers the A11 Bionic chip, Wireless Qi charging, capacity up to 256GB, True Tone display, Apple’s Neural engine, an embedded M11 motion coprocessor, Portrait Lighting, 24/30/60 fps 4K video recording, Dolby Vision and HDR10 support, and fast-charge capability, to mention ten (10) significant enhancements.

“iPhone 8 was never going to sell as well as the usual Apple flagship, and some demand almost certainly has been siphoned off by iPhone X. This wouldn’t be a problem if people could actually buy iPhone X,” Hibben writes. “TSMC’s Q4 guidance was for revenue of $9.1-9.2 billion, an increase of 10.87% y/y. This is probably bullish for iPhone X, which is still scheduled to start arriving November 3, according to Apple.”

Read more in the full article here.

MacDailyNews Take: Rational people can profit from irrational people.

Be fearful when others are greedy, and be greedy when others are fearful. — Warren Buffett

Once again, given that those who are not waiting for iPhone X (the vast majority of Day One newest-release iPhone buyers are waiting for iPhone X) are much more likely to be price sensitive consumers, it is wholly unsurprising that they are choosing the less expensive options, iPhone 7/Plus. We expect iPhone 6s/Plus units are also selling well downmarket.

Apple stock drops after Rogers CEO says iPhone 8/Plus demand ‘anemic’ – October 19, 2017
Analyst: Apple’s iPhone 7 is outselling iPhone 8 – October 16, 2017