Apple iPhone X Might Be Cannibalizing iPhone 8

Apple’s iPhone 8 pre-orders are a little slower than previous models, and the handset might have an unlikely foe to thank for it.

In a note to investors this week, KGI Securities analyst Ming-Chi Kuo said that iPhone 8 and iPhone 8 Plus pre-orders are sluggish because of strong demand for Apple’s upcoming iPhone X. In the note, which was earlier reported on by Apple-tracking site 9to5Mac, Kuo said pre-order shipment dates after initial orders are placed usually stands around three to six weeks. Depending on the model they want, if consumers order an iPhone 8 or iPhone 8 Plus today, they might be able to get it on Friday’s launch day or need only to wait a week for the handset to arrive.

Apple (aapl) has been offering pre-orders on new iPhones for years. And in most cases, the handsets it starts selling in September see their initial supply run out soon after the company turns on pre-order sales. By mid-morning of pre-order day, it’s not uncommon for new purchasers to have to wait weeks, if not a couple of months, for their smartphones to arrive.

But the iPhone 8 and iPhone 8 Plus were different. The smartphones were announced alongside the iPhone X, a major upgrade, featuring a big screen that nearly entirely covers the face and a revamped design featuring glass and stainless steel. Apple has called the iPhone X the “future” of smartphone technology, which might have made some would-be iPhone 8 customers feel like they were buying outdated hardware.

Get Data Sheet, Fortune’s technology newsletter

For its part, Apple (aapl) tried to allay some of those fears by bringing a similar glass finish to the iPhone 8 line. Apple’s handsets are also running the same A11 Bionic chip that users would find in the iPhone X, and all three of the company’s new smartphones support wireless charging.

Still, iPhone 8 and iPhone 8 Plus models are readily available, marking a stark departure from Apple’s recent iPhone pre-orders.

According to Kuo, it appears a large number of Apple customers are simply waiting for Apple to offer pre-orders on the iPhone X starting on October 27. And although the iPhone X comes with a hefty $ 999 price tag to start, at least the early adopters don’t seem concerned.

While Apple hasn’t commented on pre-orders, it’s unlikely the company would bemoan customers waiting to buy the iPhone X.

On Monday, researcher Susquehanna International Group estimated that Apple pays $ 581 for the components inside its iPhone X, giving the company a profit margin of $ 418 per unit before it factors in assembly cost. Last year’s iPhone 7, which cost $ 649, cost Apple $ 401 for its components. That translated at the time to a $ 401 profit. Apple, in other words, should make a surprisingly high margin on the sale of each iPhone X.

Tech

Maria Dehn

Maria Dehn has held editorial management positions for numerous print and Web publications. She has more than 17 years of Information Technologies and journalism experience and has written many reports on cloud computing. You can reach her on Twitter @MariaDehn

Maria Dehn

Maria Dehn

Maria Dehn

Maria Dehn

Published by

Maria Dehn

Maria Dehn has held editorial management positions for numerous print and Web publications. She has more than 17 years of Information Technologies and journalism experience and has written many reports on cloud computing. You can reach her on Twitter @MariaDehn