Since the beginning of this year, The iPhone has seen its sales drop considerably. Although this trend is common to the high-end smartphone market, it continues to attract attention because since 2003 Apple has not experienced a reduction in sales and profits.
One of the great hopes was in the iPhone 7 however, although reality seems to have exceeded expectations in terms of sales of the larger model, it seems that this is not enough to stop a slowdown that is already a trend.
IPhone 7 sales do not trace the downtrend
The higher sales figures for the iPhone 7 Plus and the growing interest in glossy black is not enough to combat the slowdown in shipments of the iPhone range.
Popular KGI Securities analyst Ming-Chi Kuo recently issued a new note to investors regarding demand for the new iPhone 7 and iPhone 7 Plus. Ultimately, Kuo points out that The volume of shipments for the iPhone 7 Plus is better than expected, although the volume of shipments for the iPhone 7 is lower than that of the iPhone 6s.
Why the increased interest in the iPhone 7 Plus
One factor contributing to higher-than-expected iPhone 7 Plus shipments is the controversy surrounding the batteries of the Samsung Galaxy Note 7. The explosions and fires caused by these devices, together with the inevitable decision to withdraw them from the market, has pushed users to look for another option if they want a large-screen smartphone.
Kuo also points out that the dual camera function of the iPhone 7 Plus has been well received, thus helping the device's sales.
The best-selling models
In terms of preferred color options, a survey by KGI shows that glossy black is the most popular choice. This model has accounted for approximately 30-35 percent of pre-sales worldwide, while in China it accounted for 45-50 percent during the pre-sale phase as well.
Regarding capacity, 128GB model has also been The most sought according to the survey.
Regarding the division between iPhone 7 and iPhone 7 Plus, Kuo states that the numbers of the iPhone 7 Plus are more or less equal to those of the iPhone 7, again largely due to issues related to the Galaxy Note 7.
Unit shortages are not just due to high demand
Kuo also notes in his statement that the shortage surrounding the launch of the iPhone 7 and iPhone 7 Plus is not solely due to market demand. The glossy black model is significantly more difficult for Apple to make, offering a 60 to 70 percent rate of return compared to all other models. Additionally, the iPhone 7 and iPhone 7 Plus were launched in 28 countries, while last year the iPhone 6s was launched in 12, which also contributes to supply shortages.
Sales will continue the downward trend
Finally, Kuo predicts that, despite the good results of the iPhone 7 Plus, Apple will see a reduction in sales year after year of its new devices. year-over-year decline in shipments of your new device. Although KGI has increased its estimates from 60-65 million units to 70-75 million, iPhone 7 and iPhone 7 Plus shipments are expected to ultimately be less than iPhone 6s and iPhone 6s Plus last year.
- Shipment volume prospects for iPhone 7 Plus are better than expected due to recall of Samsung's Galaxy Note 7 due to exploding batteries and positive reception of iPhone 7 Plus dual camera feature; We believe the recent stock price increases by Apple and its members in the supply chain mean that these positives have already been discounted.
- We anticipate that the volume of shipments for the iPhone 7 in 2016 will be lower than that of the iPhone 6S in the year 2015.
- The initial shortage of the iPhone 7 supply was due to better-than-expected demand for the iPhone 7 Plus and an insufficient supply of the covers. shiny black caused by a poor production rate of return of 60-70%; global demand is still weaker than that of the iPhone 6S.
