Apple’s iPhone sales anticipated to decline this year
Apple is receiving a distinction of a different kind. Usually, they’re adorned with accolades for their design, simplicity, and marketing amongst others. This time around a noted analyst Ming-Chi Kuo of KGI Securities, is on record for telling investors that Apple is likely to be the only one of the top 5 smartphone producers to see a decline for the year.
He notes that the iPhone 7 won’t have many new features or innovations. The result is that current iPhone owners won’t feel the need to upgrade their phone because the new features don’t justify the expenditure. Sales are only predicted to be between 190 and 205 million units. Most others on Wall Street are estimating between 210 and 230 million. However, shipments of the iPhone SE will be up from 12 million to 18 million for the year.
Kuo, doesn’t think the stronger sales of the iPhone SE will offset any declines Apple sees. The iPhone 6s is seeing a rapid decrease in sales month over month. This Tuesday, Apple will release its second-quarter earnings and has already warned investors that to see its first ever year-over-year decline in iPhone sales.
Samsung is responsible for partly eating into those figures with their stronger than anticipated sales of the Galaxy S7. Overall growth for the South Korean company is anticipated to be 1 percent making it the largest smartphone vendor worldwide. Apple will still retain their second spot even with sales dropping between 11.6 and 18.1 percent.
Apple needs to consider new design aspects to recapture their lost sales. It’s rumored that the iPhone 7 will have a new chassis (other than rose gold) but it won’t be enough to swing sales and savvy consumers are now seeing a multitude of manufactures releasing bold designs with functions to match. Several of the Chinese manufactures, in include Huawei, OPPO, and Vivo will see growth anywhere from 45.5 percent to 15.1 percent.
A welcomed major redesign should be seen in 2017. Talk is that they will be going back to the glass backs of the iPhone 4 and iPhone 4s era to help distinguish itself from most manufactures that are using metal backs. Regardless, Apple needs to become more competitive as they are falling behind on introducing new tech to the market.
[image courtesy: Apple]