Declining Resale Figures for Apple’s iPhone 18 Pro Series
According to Jefferies, the resale market for Apple’s (NASDAQ: AAPL) iPhone 18 Pro series in Hong Kong exhibits a downturn when juxtaposed with its predecessor’s metrics. Furthermore, the delivery lead times in key markets present a perplexing array of signals.
The brokerage reported that nearly all storage variants of the iPhone 18 Pro are reselling below Apple’s stated retail price.
Notably, the resale premiums for the iPhone 18 Pro Max experienced a significant drop on launch day and have largely remained subdued or continued their downward trajectory.
Among the Pro Max configurations, the 256GB model is still commanding a premium of about 8% above its official pricing.
However, performance varies considerably; for instance, the 2TB model was observed to be priced HK$1,049 under Apple’s listed price as of the afternoon of September 27.
Analysts indicated that the price escalations of $400 and $500 might account for the lackluster resale performance, suggesting that these increases could surpass the perceived incremental value for a segment of consumers.
Additionally, Jefferies commented on Apple’s transition from TLC to a more economical QLC NAND in the 1TB and 2TB models. This change could render these storage configurations less appealing to buyers prioritizing storage efficacy.
In comparing the current resale premiums for the iPhone 18 Pro Max to those observed during last year’s iPhone 17 Pro Max launch, Jefferies noted a general decline across all storage options, except for the 256GB variant.
Delivery Lead Times Show Market Variability
Jefferies indicated that delivery lead times for the iPhone 18 Pro and Pro Max models decreased early in the past week but rebounded as the weekend approached.
Nevertheless, the uptick in lead times is not necessarily indicative of heightened demand; it may stem from restricted supply, particularly as Apple ramps up production of its DUO device ahead of the anticipated deliveries on October 23.
Specifically for the iPhone 18 Pro Max, lead times were reported to be longer on a year-over-year basis in Hong Kong, China, and the United States, while they were shorter in the United Kingdom and Germany, with Japan remaining unchanged.
For the iPhone 18 Pro, lead times appeared extended in Hong Kong and China, shorter in the United States and Germany, and static in Britain and Japan.
China’s eSIM Limitations May Impede DUO Adoption
Jefferies further assessed factors affecting potential demand for DUO, which is set to commence pre-orders on October 16.
This device operates solely on eSIM technology and offers support for two eSIM profiles in China, in contrast to up to eight profiles available on compatible iPhones in Hong Kong.
Jefferies pointed out that this limitation could significantly influence Chinese consumers who often juggle multiple numbers for different purposes, such as personal, business, and travel.
Should users hit the two-number cap and require an additional travel eSIM, they might need to suspend an existing number, necessitating a visit to their mobile service provider. Restoring that number would entail further inconvenience and another in-person visit.
Jefferies posited that while these restrictions may not greatly affect initial adopters, they could become more significant as the product reaches a wider audience.
Additionally, some consumers may also be contemplating the potential launch of a second-generation, standard-sized Apple foldable device in 2027.
Maintaining its Underperform rating on Apple, Jefferies has cited a share price of $341.07 in its report.
Source link: Uk.finance.yahoo.com.
