In a new investor note, Apple analyst Ming-Chi Kuo focuses on Samsung’s upcoming Galaxy S8 refresh. However, there are still a few interesting tidbits regarding Apple in the report.
Kuo says that Samsung will see weaker demand for the Galaxy S8 vs the Galaxy S7 from last year. One of the reasons being Samsung essentially released one flagship last year, with the whole Galaxy Note 7 debacle. Another reason would be that Samsung will face strong competition from Apple this year.
In the note, Kuo explains that the Galaxy S8 lacks “sufficiently attractive selling points” which means that the OLED iPhone 8 could be a “bigger draw for consumers” versus the iPhone 7 and iPhone 7 Plus from last year.
We project Galaxy S8 shipments of 40-45mn units in 2017F, implying slower momentum compared to Galaxy S7 in 2016 (around 52mn units shipped), attributable to: (1) a one-month difference in comparable sales period;
(2) Galaxy S7 was Samsung’s main promotional flagship model in 4Q16 after termination of Galaxy Note 7 due to the battery explosion issue, hence the higher sales base;
(3) as Galaxy S8 lacks sufficiently attractive selling points (except full-screen design), the OLED iPhone could well be a bigger draw for consumers.
Due to the improvements Apple is reportedly going to make to this years iPhone, Kuo recommends focusing on the sales and supply chain momentum of the OLED iPhone. Overall, Kuo believes that the S8 will have a small impact on the supply chain.
We are conservative on demand for Galaxy S8, and believe its contribution to the supply chain will be limited. Instead we recommend focusing on the sales outlook and supply chain momentum of Apple’s (US) OLED iPhone model.
Kuo is by far the leading provider in information this year regarding the upcoming iPhones. He expects there to be three models, with one having an OLED display, wireless charging, an all glass design, and a function area.