The demand for the most expensive iPhone from Apple is better than expected: Kuo

The demand for the new Apple's most expensive iPhone Inc. (AAPL), the XS Max, exceeds expectations, according to a leading analyst.

Two of the company's high-end smartphones based in Cupertino, California, the XS and XS Max, were sold last weekend, with starting prices of $ 999 and $ 1,099, respectively. In a research note, reported by MacRumors, TF International Securities analyst Ming-Chi Kuo said that Max's more expensive model has so far proved to be the most popular choice among consumers. (See also: Why does Apple sell its high end phones first?)

The appetite for the XS Max is "better than expected," Kuo said, adding that the 6.5-inch model outperforms the iPhone XS three to four times, smaller and cheaper, although the 512 GB storage. Ltd. is the only reliable supplier of NAND Flash memory.

"We have determined that the demand for XS Max is better than expected (3 to 4 times that of XS)," the analyst wrote. "Gold and gray-space colors are clearly more popular than silver. 256 GB is the most popular, and 512 GB are subject to a serious shortage because only Samsung can currently ship the Flash NAND. We are confident that XS Max shipments will steadily increase in 4Q18 due to the demand from the Asian market and the gift season. "

In the note, Kuo also reported a "much better than expected" request for the Apple Watch Series 4. However, he went on to warn that the availability should remain tight until it that the secondary supplier Compal Electronics Inc. starts mass production in November.

"The demand for Apple Watch Series 4 is much better than expected," wrote Kuo. "The ability of the assembler quanta Computer Inc. is already complete; therefore, the supply can not improve significantly until the production of the second Compal supplier for the Apple Watch Series 4 from November. We have increased the shipping forecast of Apple Watch in 2018 from 18 to 18.5 to 19.5 million units. "

Kuo noted that the iPhone XR is facing similar supply issues before its launch next month because Japan Display Inc. and LG Display Co. Ltd. have difficulty producing enough screens for the phone.

The analyst is convinced that these problems should "improve significantly" before the XR is available for pre-order on Oct. 19, adding that the new, cheaper iPhone, with a starting price of $ 750, will likely offer consumers enough. trade improvements of their old models. (See also: Shares of Apple Options traders will increase by 15%)