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Short lead times for the iPhone Xr show initially softer demand for the device

Loup Ventures, a research-driven venture capital firm, announced today that it has recorded short lead or delivery times for the iPhone Xr shortly after pre-orders for the device opened. Gene Munster, a managing partner at the company, said in a research note today that lead times did not change, save for several SKUs on T-Mobile, whereas the lead times for the iPhone Xs and Xs Max reached up to four weeks last month.

Munster noted that shorter lead times over the years usually indicate weak demand for a product while longer lead times typically mean robust demand from consumers. Last year, Loup Ventures recorded lead times of five to six weeks for the iPhone X in October. It's too early to say whether the initial lead times are any strong indication for the iPhone Xr since the device is still available for pre-order before it starts shipping on October 26 when Loup Ventures will also reassess its projections based upon its survey of launch day queues.

Regardless of the initial details, Munster argues that the iPhone Xr will end up becoming the best-selling iPhone over the next 12 months, likely representing 38% of the units in Apple’s fiscal year 2019. Of course, time will tell if this actually ends up being the case or the iPhone Xs and Xs Max end up eclipsing the Xr.

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