Apple showing strong orders for iPhone 11, even In China

Leading Apple analyst Ming-Chi Kuo said Sunday that he is looking for new customers is beating his expectations – and much of it is due to Chinese consumers.

Kuo boosted his forecast for iPhone 11 series shipments from 65 million to 70 million units in 2019 to 70 million to 75 million units, and said the supply chain will "grow steadily" in the fourth quarter.

Apple announced the $ 699 iPhone 11, the $ 999 iPhone 11 Pro and $ 1099 iPhone 11 Pro last Tuesday. Pre-orders for the phone last Friday, and they arrive in stores this upcoming Friday.

"Under the premise that Apple does not announce the pre-order result, we believe that the change of shipping time is offered by Apple's official website accounts for 30-40% of the total iPhone shipments, "said Kuo, an analyst at TF International Securities. "We think the value of pre-order results is lower."

Consumers in the U.S. prefer Apple's more expensive models, while the standard iPhone 11 appears to be more in China, according to Kuo.

Kuo said the iPhone is asking for "lackluster" in the U.S., where consumers "have the highest loyalty for the iPhone," and there is "strong" demand for Apple's "more expensive iPhone 11 Pro." This is the most expensive model, which is now 2-3 weeks past the launch date. Trade-in programs and Apple's zero-interest installment, Kuo said.

"The demand for iPhone 11 in the Chinese market is stronger than that in the US market," Kuo said, noting that it's a big upgrade for people who still owns the iPhone 6, iPhone 6s and iPhone 7. "iPhone 11's price is roughly equivalent to 1-1.3 times the average monthly salary in China, which is close to the price sweet spot (vs. iPhone XR's price equivalence of 1.5-1.7 times the average monthly salary in China). "

This sentiment was echoed by Chinese e-commerce site Fenqile, which told CNBC on Monday that the iPhone 11 is the most popular preorder in China.