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.
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.