It Begins? iPhone Sales Expected To Nose Dive In 2016

Posted by
Last Updated on

Things might not be looking good for Apple in 2016 if a recent report is to be believed. Apple Shares  dipped on Wednesday on growing expectations that the New York company might sell fewer iPhones in 2016 than it had hoped.

The Bank of America have cut its estimate for fiscal 2016 iPhone shipments by 10 million to 220 million. They believe there is a  weakening of Apple’s suppliers.

Apple-iPhone-6s-6s-Plus

Raymond James also lowered its estimate for 2016 iPhone shipments to 224 million from 229 million. He also pointed to lacklustre expectations at Apple suppliers, and to make matters even worse on Tuesday, Baird Equity Research trimmed its 2016 iPhone forecast to 234.7 million from 243.8 million.

Apple shares have fallen 4.4 percent over the past month and are down about 18 percent from record highs in April.

Could this be a sign of Iphones finally falling out of favour?

William Power an analyst on BAIRD wrote:

Though we always take supply chain comments with a hefty grain of salt, the Baird semiconductor team recently suggested a 20 percent cut in procurement orders based on its supply chain conversations.”

Morgan Stanley expects iPhone unit sales to drop 6 percent in the 2016 calendar year as higher prices in markets outside Americas, excluding China, and maturing smartphone penetration in developed markets weigh on upgrades and new user growth.

Those maturing smartphone penetration Morgan Stanley talks about include the likes of Infinix, TECNO, Wiko, Xiaomi etc.

In essence, do these figures affect the average smartphone buyer who is ready to spend his cash on an Apple product? Your answer is as good as mine. But to Apple, these estimated figures could be disappointing – disappointing enough to cause a change in the timeline of iPhone 7 release? Only time will tell.

4 comments

  1. lol, analysts have been forecasting a slow down in iPhone sales figures for a while, we’ll see if they’re right next year. plus is Apple really a New York company? Cupertino is in California AFAIK

  2. Source? There are a few gaps in this story which like William Power, I will take with a grain of salt.

    Will Apple be the only manufacturer affected by supplier problems? The only big thing I can see coming out of this is that the suppliers want a bigger share of the Apple pie. Can’t blame them but let’s see how this goes. I’m not yet convinced.

  3. Whether Apple sells more units or not, the company will still turn out the largest chunk of profit in the smartphone market.

    If that’s the case, who care about this analyst forecast.

    Apple has its cult fellowship. Only Blackberry comes close. Others, I doubt that.

  4. you’re obviously not a business man, otherwise you’d see how reducing (or even stagnating) sales figures would be a cause for concern for Apple Inc & Apple shareholders

Leave a Reply

Your email address will not be published. Required fields are marked *