Apple iPhone XR and iPhone XS smartphones are displayed during an event at the Steve Jobs Theater in Cupertino, California, on Wednesday, Sept. 12, 2018.

Consumers will be flocking to Apple's new iPhone XR at an unexpectedly fast rate, according to a report from Ming-Chi Kuo, an analyst at TF International Securities.

Kuo, who's known for accurate predictions that result from having close ties to manufacturers in Apple's supply chain, increased his iPhone XR shipment estimate for the calendar fourth quarter by 10 percent on Sunday. He now expects that the company will ship between 36 million and 38 million units in the period, up from a previous prediction of 33 to 35 million.

He revised his estimate for total iPhone shipments to 78 million to 83 million units from 75 to 80 million. Apple sold 77.3 million iPhones in the comparable period a year earlier, so Kuo is expecting a slight increase.

"We believe that replacement demand for XR will be better than it was for the iPhone 8 series last year because of XR's larger display, longer battery life, dual-SIM support, and new form factor design," Kuo wrote.

The iPhone XR is the most affordable of three new iPhones Apple announced in September. It goes on sale Oct. 19, and will be in stores a week later. It starts at $749, while the new iPhone XS starts at $999.

The iPhone XR offers some features found in the more expensive iPhones, such as Face ID and larger display. It isn't as water-resistant as the iPhone XS or iPhone XS Max, however, and lacks the same advanced camera system. It has a more affordable LCD display instead of the colorful OLED screens on the iPhone XS and iPhone XS Max.

Apple shares fell 2.1 percent to $217.36 on Monday, joining a broader selloff in technology stocks. The company's stock price has jumped 28 percent for the year, lifting Apple to a market capitalization of over $1 trillion.

WATCH: Hands on with the new Apple iPhone XR