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iPhone 11 Preorders Indicate Strong Demand

Apple customers are preordering the iPhone 11 in droves. China, in particular, shows strong demand for Apple’s competitively priced smartphone.

The iPhone 11 hasn’t shipped yet, but it’s already in high demand. Although far more capable than its iPhone XS predecessor, the new model’s best feature is its price. At only $699 for the base 64GB model, the new iPhone 11 is attractive to consumers and investors alike.

Unlike competitors, Apple is noticeably silent with preorder sales statistics. Analysts believe that Apple’s recent delays with shipping the new device indicates exceptionally high preorder sales numbers.

Apple Analyst Ming-Chi Kuo is optimistic about Apple preorders and has raised his estimates of quarterly sales. He predicts that Apple will sell 70 to 75 million iPhone 11 devices in 2019 alone.

Demand for Apple’s new iPhone is much higher in China than the United States. Apple is closer to market saturation in the US than in China.

Cost has always impeded iPhone adoption in China. The new iPhone 11 costs about as much as one month’s salary in China. While this is expensive by Western standards, it’s the right price in China, where Apple products are considered a status symbol.

Apple’s last iPhone, the XR, cost about one and a half times more than a month’s wages in China. This high price turned off Chinese consumers and contributed to the iPhone’s international sales slump.

iPhone sales are leveling off, and this is a concern for the Cupertino-based company. Sales of the device used to account for two-thirds of Apple’s revenues. Today, only about half of their earnings come from the iPhone.

Dwindling iPhone sales have been addressed with a few distinct strategies. First, Apple is expanding services, adding Apple Arcade and Apple TV+ to a growing suite of intangible products. They’ve also drastically reduced prices on devices. The $699 iPhone 11 is competitively priced, in line with Google’s Pixel devices, as well as Samsung smartphones.

Apple is still taking preorders for the iPhone 11. The device will ship as early as September 20th, however, due to high demand, some will ship as late as early October.


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