Tag: iphone sales

Apple could sell fewer iPhones this year compared to 2014.

KGI Securities analyst Ming-Chi Kuo has forecasted that global iPhone shipments may be lower in 2016 than they were in 2014. If he is right about his predictions, Apple could be among the top five smartphone brands to perform the worst this year.

Three million fewer iPhones could be sold this year than two years ago.

Ming-Chi Kuo, a respected analyst from the Asia-Pacific based financial services group KGI Securities, gathers intelligence from his contacts in Apple’s Asia supply chain. According to a new research note he recently issued, in a worst case scenario, iPhone shipments in 2016 are anticipated to reach a mere 190 million units. This would be an 18 percent decrease in shipment growth and three million fewer iPhones compared to what the company sold in 2014.

Kuo said in his note that even in the best case scenario Apple is anticipated to sell only 205 million units, which would still be an 11.6 percent decrease in growth and five million short of the lower end of analysts’ estimate range, reported MacRumors.

Whether or not the best or the worst case scenario is the end result, it is Kuo’s prediction that Apple will underperform the industry and become the only global top-five smartphone brand to see a decline in shipment this year.

Limited iPhone 7 selling points are one of the key factors behind global iPhone shipments decline.

In his note Kuo stated that “Given the fact that shipments fell YoY for the first time in 1Q16, we don’t think large-screen replacement demand will contribute much to growth.” He added, “We don’t see many attractive selling points for iPhone 7 in 2H16 and are conservative on 2H16F shipments.”

He predicts that out of the leading five smartphone brands (Samsung, Apple, Huawei, Oppo, and Vivo), only Apple will see shipments fall YoY (year-on-year). This suggests to KGI Securities that the drop in iPhone sales cannot be blamed only on industry structure.

Kuo believes that key factors responsible for the expected decline are the slowing market demand for handset replacements with large screens and limited iPhone 7 selling points.

According to Kuo, for Apple to sustain its global iPhone shipments growth it needs to develop more innovative features that will revitalize the user experience, such as in the form of hardware, software and form factor design specs.

Apple’s earnings announcement for the first calendar quarter of 2016 will occur on April 26.

The larger size display Apple smartphone broke pre-order sales records during its first 24 hours of availability.

Within the first 24 hours of pre-orders for the iPhone 6 Plus, the Apple smartphone with the new larger display, managed to break records, and is now facing delays of three to four weeks over what had initially been anticipated.

Now the new model of Apple smartphone has also started to run low or even sell out in American stores.

Stores throughout Manhattan, not just the Apple Store, have been reporting that their stocks of the iPhone 6 Plus are rapidly fizzling out. In fact, many of them came to the point that they were sold entirely out of their stock. This was the case that was being experienced in shops across the country that have been selling this new device. In downtown Portland, Oregon, the customers who had been lined up outside the store on the day that the product was to be released were informed that the larger display smartphone was sold out even before it opened.

This is striking news, when taking into consideration that the iPhone 6 Plus isn’t selling as well as its smaller alternative.

That said, despite the fact that the iPhone 6 is selling more quickly, its delay is notably shorter than the larger option. Therefore, some consumers have decided to go with the smartphone that they are able to obtain more quickly. Some are seeking to find alternative ways to obtain the larger mobile device, but – depending on location – it can feel nearly impossible for those consumers to be able to have those devices in their hand without a considerable wait period.

According to 451 Research LLC analyst, Carl Howe, in a sales forecast that they have released Apple could may have sold between 12 million and 15 million devices over the weekend. That said, another prediction, from Sanford C. Bernstein and Co. analyst, Toni Sacconaghi, it was stated in a note written to investors that it was likely that there were between 7 million and 8 million devices sold. That would place the total at just shy of the 9 million units sold last year when the iPhone 5S and 5C were released.

The reason that Sacconaghi felt that sales of the iPhone 6 Plus and its smaller counterpart would not sell as much as last year was that Apple is facing serious restrictions in China so that it cannot be included among the countries in which these mobile devices are being sold in their first wave.