Analyze that: iPhone 7 assembler says demand is actually beating forecasts

Analyze that: iPhone 7 assembler says demand is actually beating forecasts
It wasn't long after the iPhone 7 and iPhone 7 Plus went up for sale that analysts started spelling a decline in year-over-year sales and overall growth for Apple. Well-known KGI Securities' analyst Ming Chi-Kuo was generous enough to raise his forecast from 65 million shipments to 75 million shipments in 2016, assuming that the exploding Galaxy Note 7 ordeal would steer more customers towards Apple's flagship. And market research firm GfK came to the conclusion that the new iPhones' sales were down 25% on the opening weekend (when compared to last year's 6s and 6s Plus).

Of course, Apple doesn't release official figures for the opening weekend — it just does its quarterly sales reports. However, chairman of Pegatron — one of the manufacturers responsible for iPhone assemblies — Tzu-hsien Tung has recently spoken to business media Nikkei and said that the iPhone 7 is doing pretty well – better than Apple expected, in fact.

While he didn't give away any official numbers, Mr. Tung said he is “cautiously optimistic” about demand for the new iPhones, hinting that it may be exceeding Apple's initial forecasts. According to him, the customers don't care about the lack of an innovative design as much as analysts think they do. He also went on to say that he doesn't believe that the Galaxy Note 7 fiasco had an effect on interest towards iPhones — Mr. Tung believes that the Galaxy S7 is the main competitor for Apple's smartphones, not the super-charged Note series. In an off-beat comment, he also mentioned that he himself enjoys using Samsung's S Pen-toting phablets.

According to reports, Apple's initial 2016 sales expectations for the iPhone 7 and 7 Plus were 100 million units. If demand is truly higher than expected, then it seems the lack of a headphone jack is barely an issue that's going to hold the phone back.



source: Nikkei via Ubergizmo

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19 Comments

1. aegislash

Posts: 1430; Member since: Jan 27, 2015

It's strange but I am the only person I have seen so far with a 7 Plus. I remember back when the 6/6 Plus came out, I saw virtually everyone with them within a few days of launch.

7. Finalflash

Posts: 4062; Member since: Jul 23, 2013

Well this is coming from a supplier, and they were told to build 100 million iPhone units for the end of the year. So they will think it is selling well purely on that number because it is higher than even what most analysts expected. The issue is, will they sell this many or not? Everyone else is expecting less than 75 million total sales so it remains to be seen how well Apple actually does this year.

11. trojan_horse

Posts: 5868; Member since: May 06, 2016

I too, I doubt Apple will sell the alleged 100mil in this Q4 alone. Applwe needs a serious kick in the butt via a big decline in sales to make it understand that the removal of 3.5mm jack was a bad move.

19. ctdog4748

Posts: 797; Member since: Mar 05, 2016

Steve Jobs should have groomed you to run Apple instead of Tim Cook, huh? What went wrong, you didn't want to take the pay cut or something?

24. Leo_MC

Posts: 6139; Member since: Dec 02, 2011

Again with the jack nonsense? Who the hell cares what kind of hole is in a phone as long as there's is a headphone to stick it in?

15. jonartpop

Posts: 196; Member since: Oct 25, 2012

Because they look basically the same lol.

17. nctx77

Posts: 2540; Member since: Sep 03, 2013

Somebody like me hasn't even received their pre-order yet dude! Also, if it's in a case, how do you know the difference from a 6/6s/plus?

25. drunkenjay

Posts: 1625; Member since: Feb 11, 2013

No offence but unless you see the back of the phone, you cant even tell if its an iphone 6 or an iphone 7

3. kiko007

Posts: 7385; Member since: Feb 17, 2016

No one cares. I don't see you posting LG's analytical jargon, so why Apple's? Besides the inevitable flame war I mean....... (And yes.....I am fully aware that this is a positive assessment. I'm just curious as to why a tech site would delve the dark web for things that have absolutely no effect on the device in question.)

5. aegislash

Posts: 1430; Member since: Jan 27, 2015

You said it right there, Kiko. Articles like this start flame wars, which equals clicks, which equals $$$. Unfortunately for them, most of us have adblockers in use because of how horrible the ads are on here, so really they're missing out. ;)

16. piyath

Posts: 2445; Member since: Mar 23, 2012

Web articles are decided by the managers of the site. This website is belong to them Bulgarian people, the owner of the network and authors. Not us. So stfu and read or just leave from the site.

23. kiko007

Posts: 7385; Member since: Feb 17, 2016

Pro-tip: Don't make an argument with no point. What the hell does their residency have to do with anything? Pro-tip #2: Get out of your mom's house and learn how to talk to people. That "sftu" just put you on my public s**t list, prepare to be thoroughly annihilated.

4. flavius22

Posts: 218; Member since: Aug 23, 2015

Ofc who doesn't want a limited edition Iphone

8. xdza1979

Posts: 296; Member since: Aug 08, 2015

"Actually"

10. ibend

Posts: 6747; Member since: Sep 30, 2014

12. Derekjeter

Posts: 1439; Member since: Oct 27, 2011

Somebody said above and it's true I have not seen anyone with a iPhone 7 plus. Even worst I haven't seen anyone with a iPhone 7. I am the only person in our warehouse (300 employees) that has the new iPhone. A few have talked about ordering it but this is nothing compared to when the 6s was launched. Apple is so lying about their numbers. It's worst when they hold back inventory instead of shipping them to the people who already paid for them.

14. bucky

Posts: 3771; Member since: Sep 30, 2009

I agree. I have one and haven't seen one anywhere. Gotta be honest i may sell for a profit and go back to a 6s.

13. tedkord

Posts: 17047; Member since: Jun 17, 2009

Both could be true. It could be down from last year's numbers, but up versus internal projections. There isn't necessarily any dissonance between these statements.

21. Fona13A unregistered

In other news cheese sells by the wheel.

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