Tag: iphone shipments

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.

Although the South Korean handset manufacturer had previously lost its crown, it appears to have regained it.

By the end of last year, Samsung had managed to make its way back up the list in smartphone trends by shipping about the same number of handsets as Apple, but the news for the South Korean tech giant has continued to improve according to some of the latest stats.

Samsung has now moved its way back to the top spot for the number of smartphones shipped.

These smartphone trends are based on the number of shipments that the company made during the first quarter of this year. During the first three months of 2015, Samsung shipped 83.2 million mobile phones, which represents an increase over the 74.5 million that it shipped during the last quarter of 2014 when it had pretty much matched Apple’s numbers.

At the same time, these smartphone trends weren’t as favorable for Apple, which saw its shipments fall.

From January through March, iPhone shipments dropped to the level of 61.2 million, putting the company in second place behind Samsung. Both of those companies remain well ahead of the third place manufacturers, which are Lenovo/Motorola. Together, they shipped a much lower 18.8 million smartphones during the same period of time. That said, closely behind those two was Huawei, which managed to send 17.3 million devices out the door of its own warehouse during the first quarter of the year.

This data was presented by Strategy Analytics, which assembled the shipment and market share figures for the top players in the mobile technology industry. According to that firm, Samsung took in a 24.1 percent global smartphone market share. It also placed Apple at 17.7 percent of the worldwide share of the market. Lenovo/Motorola held 5.4 percent and Huawei had a firm grip on 5 percent.

Strategy Analytics also went on to release a range of additional feature phone and smartphone trends figures with regards to their shipments around the globe. That helped to show that Microsoft’s performance in this sector is not nearly as good as what that company had likely been hoping to achieve. After all, the figures revealed that Microsoft had seen a 33 percent drop in its mobile phone shipments in the first quarter of 2015, when compared to the same quarter in 2014.