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The iPhone 7 is reportedly outselling the iPhone 8

It's likely Apple fans are holding out for the iPhone X instead.

Gordon Gottsegen CNET contributor
Gordon Gottsegen is a tech writer who has experience working at publications like Wired. He loves testing out new gadgets and complaining about them. He is the ghost of all failed Kickstarters.
Gordon Gottsegen
2 min read
Sarah Tew/CNET

iPhone 8? Big deal. More people are buying last year's iPhone 7 than the newly released 8, reports Reuters citing analysis from KeyBanc Capital Markets and carrier surveys conducted in the US and UK.

This bucks the usual trend of new iPhones being super popular -- with select models often selling out -- in the weeks after their release. The iPhone 8 and iPhone 8 Plus have been on shelves since Sept. 22, but initial response on the phone's release day seemed a lot more tame than previous years. This adds to the talk that many people are holding out for the iPhone X, which releases Nov. 3. According to the analysts cited by Reuters, this may be the case.

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Last year the iPhone 7 was hugely popular upon release, resulting in Apple selling a record-breaking 78.3 million iPhones that quarter. But iPhone 7 sales have seen a resurgence, partially thanks to a price drop after Apple's September iPhone event -- falling from a starting price of $649, £599 and AU$1,079 to $549, £549 and AU$849, respectively -- according to the report.

Meanwhile, the iPhone 8 starts at $699, £699 and AU$1,079, which is a solid price jump from the initial price of the 7 (except in Australia). The iPhone 8 features all sorts of upgrades from the 7, like wireless charging, improved camera and a better screen, but according to the survey data, these aren't compelling enough to justify spending the extra money.

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Analysts also claim that sales deals for the iPhone 8 are much more modest than they were for the iPhone 7 last year.

US carrier AT&T said that phone upgrades dropped by nearly 900,000 this quarter compared to last year. While this number includes phones from all manufacturers, analysts from Jefferies are pointing to weak iPhone 8 demand.

As many people choose to wait it out for the iPhone X, there are reports that problems in production may lead to a limited supply of Xs upon the phone's release. This could mean that people who are waiting patiently for their new iPhone may have to wait even longer than the Nov. 3 release date.

Apple did not respond to a request for comment.