Stronger than expected iPhone 7 sales not enough
Despite Apple managing stronger than expected sales of its iPhone 7 plus, it is not enough to offset a huge decline in iPhone sales, according to one telco bean-counter.
The Tame Apple Press is full of news about how Apple’s iPhone 7 is a sell out, pretty much like it normally is at this time of year. This has meant that Apple shares have gone up as investors think the outfit is going to see its cash cow mooing for another year.
But KGI analyst Ming-Chi Kuo said that the prophesied slump in iPhone sales is coming, and there is no stopping it. While he has indeed improved his estimates of the total sales for the iPhone 7 and iPhone 7 Plus, overall he predicts that the numbers will be lower than the iPhone 6s.
The analyst is basically saying that Apple has a lot to thank Samsung for. The recent fiasco surrounding exploding Galaxy Note 7’s has helped increase confidence, outlook, and sales of the iPhone 7 and 7 Plus.He said that earlier reports of supply shortage for the iPhone 7 isn’t exactly because strong demand, believes Kuo. He said that the Jet Black color which is in high demand as well is actually harder to make. He still thinks that the production yield is estimated to be 60-70%.
While KGI raised its iPhone 7 shipment forecast from 60-65 million to 70-75 million, the numbers steal look bleak for this year’s generation as a whole, falling below that of the iPhone 6s. Even Apple itself has already predicted this, though it will naturally not share solid numbers.