Written By: Cassandra Bondie

It isn’t surprising that, with all of the phone releases in the past several years, demand for the upcoming iPhone 8 is relatively soft. Still, fans of the Apple brand are concerned that the lack of interest could mean trouble in paradise.

According to Investor’s Business Daily and Business Insider, the truth is quite the opposite.

“Our work indicates iPhone demand remains soft, as expected, ahead of the iPhone 8 launch,” wrote Nomura Instinet analyst Jeffrey Kvaal. “We expect the iPhone 8 to bring sufficient upside to defer concerns of the next phone cycle for now.”

Kvaal believes the softness of interest is a good thing for Apple, even though iPhone sales during the next two quarterly reports are “likely to be lackluster.”

“Our checks indicate U.S. (iPhone) subscribers are deferring (upgrades) until the higher ASP (average selling price) iPhone 8 launches,” he said. “We believe U.S. carriers are prepared assertive promotions for the launch.”

These carriers include Sprint, T-Mobile US, AT&T, and Verizon – all of whom will want to defend their territory. In other words, the analyst believes Apple is trailing now (and may trail for the next few months) but will rebound once the iPhone 8 is actually released.

It makes sense. After all, how many people can afford to upgrade iPhones after every single release? Take a look at how far technology has come in the past ten years. Consumers don’t need an upgraded phone to survive. Anything with a decent processor and application download abilities will do.

With smartphone technology as advanced as it is, companies like Apple and Samsung are relying on flashy new upgrades to garner the attention of consumers – especially those who won’t need an upgrade for several more release cycles.

According to Business Insider, the iPhone 8 could cost more than $1,000, according to previous rumors.

“There’s a good chance that carriers like Verizon or T-Mobile will discount either the phone or a payment plan for the phone,” the article reads. “Which means that people may be able to get a deal on an iPhone 8 if they sign up for a long-term contract.”

The article further argues that consumers with older iPhones are waiting for a serious launch to upgrade.

“The iPhone expected to come out this fall does sound like a big update,” it reads. “It’s rumored to have a glass body, wireless charging, and a new, high-quality screen that covers the entire front of the phone, and there will more likely be a lot of iPhone users and Apple fans lining up to get one.”

Analysts call the random spur in sales strength a “supercycle.” During this cycle, carriers are more likely to gain new customers as smartphone owners look for the most affordable plan.

Even though pent-up demand for the iPhone 8 may hurt iPhone 7 sales this fall, Apple is expected to rebound once the launch takes place. How long will consumers wait to purchase another upgrade? Only time will tell.
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