Today in a note to clients, JP Morgan analyst Rod Hall offered his latest analysis on Apple’s supply chain, giving us a look at his predictions for iPhone 8 sales as well as details on specs and pricing. Following Samsung’s introduction of the Galaxy S8 yesterday, the report notes that based on current supply chain intel Apple’s OLED is expected to be less curved than the S8 and therefore less of a so-called edge-to-edge “infinity” display:
While Apple’s new OLED form factor looks similar, current indications are for less use of curved OLED which may result in a slightly less “infinity” screen form factor.
Building on reports that the iPhone’s price tag could increase to $1000 or more this year, Hall anticipates the average selling price of the entire next iPhone line to expand as the expected high-end OLED model hits an approximately $1000 ASP. The report doesn’t, however, offer specifics on which models or by how much the rest of the line could increase on average.
The note also backs up previous reports that the iPhone models will remain with a 3GB RAM configuration on the high-end, and that NAND Flash providers and other suppliers are expected to “benefit from the potential content increase in the upcoming iPhone.”
Hall notes that his forecast for the expected “iPhone supercycle” is now at 260mn units in 2018 up from its previous estimate of 245mn. That, as the report points out, is versus a consensus at 225mn.
“We have raised our FY18 iPhone forecast to 260mn units (vs. consensus at 225mn) from 245mn units, driven by a strong feature upgrade and robust replacement demand, with the installed base at 1.1bn units. With a ~$1,000 ASP for the OLED model, we also anticipate ASP expansion in the next iPhone cycle.”
In a note earlier this week, Hall said that the anticipated higher Phone 8 price would help control high demand for new camera features and a major physical redesign expected for the device while offsetting Apple’s increased bill of materials.
Catch up with the latest reports and intel on iPhone 8 here.
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