Apple announced its flagship iPhone lineup of iPhone XS, iPhone XS Max, and iPhone XR to a generally mixed reception. Ming-Chi Kuo says that the XS preorders are ‘lackluster’, but believes in the strength of XS Max demand and the iPhone XR launch in October.

He also noted that TF Industries are raising estimates for Apple Watch Series 4, with the new models taking about 55% share, alongside the cheaper Series 3 watches.

Kuo says that demand for Apple Watch Series 4 is better than their initial expectations due to ‘innovative functions’ like the electrocardiogram. They expect Apple Watch shipments to reach 18 million units in 2018.

Kuo says sales would be even stronger if Apple can get regulatory approval for ECG features in more regions, beyond the US.

Regarding the iPhones, Kuo believes that shipments of new iPhone models will grow slightly year on year to 75-80 million units for the remainder of the year.

Kuo says that reception to XS Max in China is strong due to the gold case option, larger screen and the addition of dual-SIM capabilities. Kuo believes that the Max will make up about 30% of new iPhone shipments.

The XR also has a positive outlook according to Kuo. They expect the XR to makeup the majority of shipments, between 55-60% of sales. However, they see weaker demand for the 5.8-inch XS, which is reflected in the general availability of XS models on the Apple Store.

The new phones and Apple Watch launch this Friday, 21 September. Let us know in the comments what you’ll be getting.

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