Ming-Chi Kuo: iPhone 7 won't have many 'attractive selling points'

Ming-Chi Kuo: iPhone 7 won't have many 'attractive selling points'
KGI Securities analyst Ming-Chi Kuo tends to be the go-to guy on the topic of future Apple products. Though Cupertino is expected to drop its next smartphone, known unofficially as the 'iPhone 7', in September, Kuo doesn't foresee it being a game-changer. In a new research note, he suggests that iPhone shipments for 2016 are poised to drop significantly, thanks largely to poor sales of the iPhone SE and the iPhone 7's perceived lack of 'attractive selling points'. 

Traditionally, the 's' iPhone cycle has been followed by an overhauled model a year later. Given that we're at the 's' stage with the iPhone 6s and 6s Plus, the design of the next-gen iPhone is expected to adopt a largely glass composition -- apparently similar to the profile of the iPhone 4 / 4s. But Kuo doesn't believe this will be enough to reel in consumers in their droves, and instead, he anticipates a significant decline in iPhone sales for this year in total. 

As a best case scenario, Kuo suggests that Apple will ship 205 million devices, which is a fall of almost 12 percent year-on-year. Worst case, he anticipates shipments of 190 million, which would constitute an 18 percent drop and would be even lower than the 193 million shipped in 2014. Either way, out of the top five smartphone brands, Apple would be the only firm to see year-on-year decline in shipments for 2016. 

Ming-Chi Kuo: iPhone 7 won't have many 'attractive selling points'
_
Apple recently dropped the iPhone SE, a powerful device with a similar appearance to 2013's iPhone 5s. Though critically acclaimed, the handset is only expected to muster 18 million shipments this year, or around one-tenth of total iPhones shipped through the entirety of 2016. 

The reason why Kuo is held in such high regard for his Apple coverage is his strong track record. With almost half a year until the anticipated announcement of the next iPhone and plenty of time before the year's end, the Mac maker could still yet defy Kuo's rather damning predictions. 

Needless to say, things aren't looking good, and judging by the table above, Apple's position alongside Samsung as the smartphone market's Big Two could soon be under major threat. 

Thoughts?

source: 9to5Mac

Related phones

iPhone 7
  • Display 4.7" 750 x 1334 pixels
  • Camera 12 MP / 7 MP front
  • Processor Apple A10 Fusion, Quad-core, 2340 MHz
  • Storage 256 GB
  • Battery 1960 mAh(14h 3G talk time)

FEATURED VIDEO

111 Comments

1. Unordinary unregistered

The iPhone is an iPhone. Just like a Porshe is a Porshe. It may not be a heavy and bloated clunky Buggatti with all the bells and whistles, but it's a great phone. It'll keep selling because of this. Haters will fail to realize this. The answer is simple. It's a great phone.

4. Wiencon

Posts: 2278; Member since: Aug 06, 2014

This time it will be flop (at least in the iPhone category) People who are waiting to see 7 will be disappointed and will probably buy 6s and everybody who stayed on 4/5 will buy SE if they haven't already Anyway, this thing applies to every phone this year: no phone is outstanding or just interesting, they are all the same at this point with only minor differences, this year will be the same and people will feel no need to upgrade

47. Unordinary unregistered

Your statement was said here countless times about the iPhone 4S, 5, 5S, 6, and 6S. Lol. All of which pushed numbers higher than any other flagship.

52. janis

Posts: 397; Member since: Mar 10, 2014

Wiencon (Posts: 1673; Member since: 06 Aug 2014) i thought 5s was released 2012/13 so that just shows how smart u are here. my personal thoughts about next iphone same 750p same LCD, maybe some minor upgrades design wise, and on the page will be same statement, i forget it, it was something like changed everything etc very innovative :D

65. Unordinary unregistered

I really think you need some help. Did you suffer from brain damage? Above statement was meant as generically. Thought it was pretty obvious and didn't need to type with such detail lol, like some people on this site. Now I know who upvotes Techie lmfao

59. 2.5GHz

Posts: 270; Member since: Apr 03, 2016

Keep on kidding yourself. Apple sells 2 iPhone models, Samsung sells many models. You can't expect the Galaxy S series to outsell the iPhone, because it's not the only model Samsung makes. And not forgetting that Apple alone sells iOS devices. Samsung isn't the only OEM who sells Android devices,.. So you can't expect the Galaxy S series to keep on breaking sales record YoY.

103. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Based on the fact of 5 selling models. Not one model. When Apple first sold 75M phones, they were not of one model even if most were the latest. Also Apple makes only one phone. How many Galaxy S would Samsung sell, of it were their only phone? Hmmm!

88. Mercedes-Benz

Posts: 403; Member since: Jan 18, 2015

S versions of the iPhones are better than number increase versions

7. fyah_king unregistered

No, it's because I got an "iphone!" Omg!

36. QuasarExod

Posts: 102; Member since: Mar 29, 2016

Bring out the first iphone, tell those clueless people on the street that's the iphone 7 and ask for their opinion. Enjoy the comedy :D

84. cheetah2k

Posts: 2192; Member since: Jan 16, 2011

Well to be honest not much has changed.. the menus have been tweaked.. And it now supports MMS... hahahahaha

90. MrHate

Posts: 314; Member since: Feb 09, 2015

Found the stupid hater. hahahahaha

8. Rigbaby

Posts: 98; Member since: Nov 06, 2014

Please don't call the Bugatti heavy, bloated and clunky... ( ´•︵•` )

23. ibend

Posts: 6747; Member since: Sep 30, 2014

its true tough.. just compare it to other sexy supercar like P1, laferrari, and 918 :P

48. Unordinary unregistered

Or the American made Hennesey "Bugatti killer" Venom

60. 2.5GHz

Posts: 270; Member since: Apr 03, 2016

Hennessey Venom GT with it's fake theoretical speed. Yeah,. "Bugatti killer" lmfao /s

67. Unordinary unregistered

Guess the track videos are Michael Bay'd and fabricated lmao.

81. htcisthebest

Posts: 434; Member since: Nov 15, 2011

I thought the Hennessey Venom is based on Lotus, which is a British car? Don't quote me on this though.

110. JumpinJackROMFlash

Posts: 464; Member since: Dec 10, 2014

Jesus, only an american would compare classless trash like the Venom to a Bugatti.

111. Unordinary unregistered

Lmao another Bugatti d*ck rider.. Your car isn't the fastest anymore. Get over it..

68. TmoRep

Posts: 107; Member since: Apr 20, 2016

My built 98 dodge cummins can beat a stock Bugatti and it weighs nearly double and I haven't spent even a fraction of the price.

10. Well-Manicured-Man

Posts: 664; Member since: Jun 16, 2015

The iPhone is great device but lets be honest, Apple is simply not delivering latest technology across the board. Apple is very good in delivering performance but the rest of the phone is simply outdated. If Apple does not stopp prioritizing profit margin maximization over customer value, they truly deserve to be marginalized by consumers. Negative Screen: 2 generations behind the competition Camera: 1 to 2 generations behind the competition Battery: Way too small (but excellent power management though) Lack of wireless charging Design: Worst design since creation of the iPhone (Camera Bump, Antenna lines, quite bezels) -->Here you clearly see Steve Job's absence Positive CPU: On par with or slightly ahead of competition Speed: 1 to 2 generation ahead of the competition due to customized storage controllers which enable higher bandwidths

42. AppleVersusAndroid unregistered

You are forgetting the iPhone 6S Plus. The screen is 1080 HD. Most content is only available in 1080 HD or lower, and the screen has excellent performance reviews. Therefore it is not behind, especially since more recent phones are being released with 1080p and 720p resolutions. The battery is smaller than let's say the Note 5, but it offers the same battery life and even better I'd say, having owned both phones my iPhone 6S Plus drains a lot slower than my Note 5 did. Your design negative is completely subjective since many people love the design, and every single phone now has a camera bump. That point is null and void. Lack of wireless charging, again, subjective since wireless charging isn't truly wireless, you still have to have the phone in a fixed place where the device charging it is plugged in. You didn't even mention the storage. And I will agree that the camera isn't as good as SOME of the competition, but it's still a good camera. It just isn't the best.

53. janis

Posts: 397; Member since: Mar 10, 2014

just say u are iphone lover, we will understand. i could add some points from my side, since i had iphone before, now i use samsung edge 6s 1. 16gb for flagship sounds like retarded, even for the one who dont use it for video. 2. dont bs us with that 750p is very good, i got 1440p, i can tell difference there 3. ios is very very boring os, main thing why i switched, plus back button is on top, well if that has not been changed. 4. parties/work i see iphone people always carry chargers with them daily. i have never took my charger to work. apple needs to step up the game, improve screens, less bezels and i will go back and try it once again.

62. 2.5GHz

Posts: 270; Member since: Apr 03, 2016

I can also spot the difference between 1080p versus 1440p! VR is a mess on a 1080p screen. And iOS is way too featureless..

74. AppleVersusAndroid unregistered

I myself, and the majority of cellphone users do not use their cellphones for VR. Nor do we see VR as something that provides us any benefits. In addition, a cellphone is merely VR compatible and is not made solely for a VR experience. Cellphones are only being made VR compatible out of convenience and because while the amount of people getting to VR is growing, nobody is ready to drop hundreds or thousands on a standalone device. So the better alternative to promote VR is to make use of a device that everyone has. Many would argue even 2K is too low of a resolution for VR, even 4K depending on what you're doing. If you put two screens side by side at the same brightness playing the same movie say, from Netflix streaming in HD and you're casually viewing it without shoving your face centimeters away from the screen, you're not going to be able to confidently claim which one is 1080 and which one is 1440. It's going to be a guess.

85. cheetah2k

Posts: 2192; Member since: Jan 16, 2011

iOS was ahead of its time back in 2007 - but 9 years later, what has really changed? Not much. iOS needs a total revamp.. make it interesting again. If Apple ever throws in current tech with a new iOS then I might be tempted to go back to the darkside..

73. AppleVersusAndroid unregistered

My iPhone 6S Plus is my first iPhone. I have previously only owned Samsung Galaxy Fascinate, S3, S4, Note 3, Note 4, and Note 5. Also a Lumia 735. The Galaxy S4, Note 3, and Note 5 were my favorite Samsung devices. But I prefer the user experience of the iPhone. iOS is smooth as butter. The apps integrate exceptionally well into the operating system and the overall design. I also have seamless compatibility with my Macbook Pro. I bought the 64GB version because I agree that 16GB is not enough space for a device that you cannot expand storage space on. The bezels are fine, there is nothing wrong with them. Bezels do not effect the performance of my phone and I even find the top and bottom bezels appealing because you can more easily distinguish the phone from others. Whereas many newer Android models are beginning to look exactly the same with their rectangular fingerprint home buttons and thin bezels. Again, I was never talking about the iPhone 6/6S. So everything you said to me about that phone is pointless, because that was not the device I was discussing. After owning my Notes I can't imagine going back to a smaller phone so the 6S Plus suits me just fine.

98. kevv2288

Posts: 272; Member since: Jul 30, 2015

What is a Samsung edge 6s? If your gonna hate on the iPhone at least know the name of your own phone. You mean the Samsung galaxy s6 edge? 6s is an iPhone model.

104. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Considering the Note 5 has way more hardwarebtpnpush, a heavier OS and has far more features. The fact it last as long as the 6S Plus, shows how much better the Note is. The iPhone 6S Plus couldn't even run the Note 5 hardware.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.