iPhone X sales
Apple’s iPhone X is off to a good start, according to a new report. Reuters/Lucas Jackson

Shipments of iPhone X units through the 2017 holiday quarter are expected to swell, according to a new note by KGI Securities analyst Ming-Chi Kuo, seen by 9to5Mac.

His predictions follow the release of the iPhone X in stores last week. Apple and other companies began taking pre-orders for the 10th-anniversary iPhone two weeks ago.

For the holiday quarter, Kuo said Apple and its manufacturing partners will boost production to ship between 25 million and 27 million, and should sell between 22 million and 24 million.

For the first quarter of 2018, Kuo expects production to increase by 35-45 percent quarter-on-quarter, with strong demand continuing into 2018. The two things that will boost demand for the device is the decrease in consumers’ initial concerns about some of the changes the iPhone X includes, like the lack on the home button, as well as the Chinese New Year.

The note comes after numerous reports said Apple was having productions issues with the iPhone X. The increase in units means those days are over.

While the iPhone X is expected to do well, the story isn’t the same with the iPhone 8, which was released in September. The iPhone 8 doesn’t include some of the features the iPhone X does, like the Face ID. Kuo said production of the iPhone 8 will decline by 50-60 percent during the first 2018 quarter, compared to the holiday quarter. The analyst believes the iPhone 8’s, “few major selling points” will create a lower demand. However, the iPhone 8 Plus will sell slightly above previous estimates, Kuo said.

The note comes after Apple reported last week its best fourth-quarter figures ever. During Apple’s earnings call, CEO Tim Cook said the iPhone 8 and 8 Plus sales “exceeded our expectations.” However, the iPhone 8 didn’t receive the reception the iPhone X did among consumers. Apple did not reveal how many iPhone 8 units it sold, but was quick to point out during the call that it’s the first time the company releases three iPhones so close to each other.

Apple is expecting even better figures for its fiscal 2018 first quarter. Cook said the company expects it to be the “biggest quarter ever,” with revenue between $84 billion and $87 billion.

As for the iPhone X’s production, Cook said last week it’s coming along.

“The ramp for iPhone X is going well,” Cook said addressing previous concerns with demand. “Considering it’s the best iPhone created and with the advanced technology. We're really happy that we're able to increase week by week what we're outputting. Were going to get as many of them as possible to customers as soon as possible. I can’t predict at this point when that balance will happen.”

The iPhone X includes a TrueDepth camera system for the Face ID and Animoji. The device sports an edge-to-edge OLED display and no home button. The 64GB iPhone X model is priced at $999, while the 256GB version is going for $1,149.