Analyst Ming-Chi Kuo believes iPhone 7 demand has peaked, predicts yearly sales decline

The final quarter of 2016 might not be the most prolific for Apple's sales, as renowned KGI Securities analyst Ming-Chi Kuo believes that demand for the iPhone 7 has peaked – just two months after its announcement. His reasons to think iPhone shipment forecasts will have to be revised include lack of technological surprises in the 4.7-inch iPhone 7 and shorter times for delivering online orders of the formerly hard-to-procure iPhone 7 Plus, which could imply slowing demand. However, the analyst isn't fixated on the latter, noting that fixed manufacturing capacity is also a factor in defining whether a device goes out-of-stock.

However, Kuo has reiterated that a year-over-year iPhone shipment decline is possible in the first quarter of 2017, due to the lower-than-expected demand and the strong competition in China, which keeps Apple from capturing highly desirable market share in the country. Low-cost domestic smartphones and intense shopping promotions, such as festivals and flash sales will make it hard for foreign brands to benefit from the Holiday season shopping sprees.

ALSO READ

Try Noble Mobile for only $10

Get unlimited talk, text, & data on the T-Mobile 5G Network plus earn cash back for data you don’t use.

Buy at Noble Moblie