14 DAY TRIAL // The iPhone X Is a pretty expensive device, that’s for sure, as the top-of-the-range model with 256GB storage sets customers back $1,149, but this doesn’t necessarily mean the price tag will be a decisive factor for people not to buy it.
In fact, Morgan Stanley’s Kate Huberty believes that most of those who are interested in getting an iPhone X will do it for sure during the holiday season, which means that the shopping budget for this Christmas will be substantially impacted by Apple’s new model.
In other words, some other product categories that typically experienced increased sales in December could actually “donate” sales to the iPhone X, including apparel.
“We see this upgrade supercycle coupled with the very high $999 iPhone X average selling price as a significant headwind to Specialty Retailers and Department stores in the fourth quarter,” the analyst was quoted as saying, adding that most people could think that “I just bought a $1000 phone last month, I don’t really need another pair of jeans.”
More iPhone X units ready by Christmas
December is also the month when Apple should finally align production with demand, as the company is still struggling with constrained supply at this point. It’s believed the manufacturing issues have already been resolved by Apple and its partners, and more units should arrive in stores in November and December, just ahead of Christmas.
The analyst expects the iPhone X super cycle to continue in early 2018, and this means that the shopping budget could also be impacted in the first months of the next year, and this can happen not only in the United States, but in other large markets as well.
Of course, the forecast concerns customers who buy an iPhone X unlocked, as securing the device on installment plans reduces the initial spending on a new product. Overall, Huberty estimates that this year’s iPhone models will take about $52.6 billion of spending away from other product categories, with the iPhone X alone accounting for $30 billion.