Ming Chi-Kuo says Apple iPhone 7 and iPhone 7 Plus will sell fewer units than last year's models

Ming Chi-Kuo says Apple iPhone 7 and iPhone 7 Plus will sell fewer units than last year's models
KGI Securities' Apple analyst Ming-Chi Kuo is known for his amazingly accurate calls on all things Apple. Kuo seems to know in advance exactly what new features Apple is planning on adding to the next iPhone or iPad. The latest note that the analyst sent out to his firm's clients happened to include a hike in the number of Apple iPhone 7 and Apple iPhone 7 Plus units he believes Apple will sell this year.

Kuo cites Samsung's problems with its Galaxy Note 7, and the demand for the iPhone 7 Plus as reasons why he has raised his 2016 sales estimate for the new units to a figure between 70 and 75 million; his original forecast called for the sale of 65 million units. Even with the additional sales, this falls short of the number of Apple iPhone 6s and Apple iPhone 6s Plus models sold in 2015. The analyst also says that reports of carrier sellouts and strong demand could partially be the result of carrier promotions for the phones. In the U.S., each of the top four major wireless operators has an offer involving a free 32GB iPhone 7.

The analyst also says that Apple has only been able to score a manufacturing yield of 60% to 70% on the Jet Black version of the new phones. This naturally has led to a shortage of the Jet Black models. Apple has reportedly told suppliers that it wants to build 100 million iPhone 7 and iPhone 7 Plus handsets in 2016. That is more than the 80 million to 85 million units that the suppliers were expecting Apple to order for 2016.

Last week, German researchers GfK investigated the sales channels for the iPhone 7 and iPhone 7 Plus and came to the conclusion that launch weekend sales were 25% lower year-over-year. Still, there are some analysts that are bullish on the new iPhone models. South Korea's Hi Investment & Securities' Song Eun-jeong says that the iPhone could take over the top spot among premium smartphones because of the promotions offered by the carriers.

Conflicting stories about the breadth of demand for newly launched iPhone models is nothing new. We will have to wait until next month when Apple releases its next earnings report to get some idea of how the new units are faring. Perhaps more important will be the results of the quarter that ends in December. The results of that three month period, which includes the holiday sales period, will be released late in January, 2017.

source: AppleInsider

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iPhone 7 Plus
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46 Comments

1. Babadook

Posts: 230; Member since: May 24, 2016

Yeah why do all the careers offer 'free iphones'? Wouldn't they want to offer android phones with their bloatware on them?

2. ibend

Posts: 6747; Member since: Sep 30, 2014

my office offer free nexus each year :-/

3. fyah_king unregistered

I don't like Apple bloatware!

4. kiko007

Posts: 7506; Member since: Feb 17, 2016

What?

7. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

you can't put Apple and bloatware in the same sentence.

18. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

While I disagree with that troll, why bring the S7 here? You're starting to mention Samsung phones more than Samsung fanboys nowadays, geez.

22. Wiencon

Posts: 2278; Member since: Aug 06, 2014

Because he's an insecure fanboy just like all fanboys

25. trojan_horse

Posts: 5868; Member since: May 06, 2016

I hope you're including your self. Mr "

23. Wiencon

Posts: 2278; Member since: Aug 06, 2014

I wonder if in 20 years from now you will be proud that you defended Apple on every possible opportunity by saying how bad was Samsung. Really, get a life already

12. maple_mak

Posts: 953; Member since: Dec 18, 2013

I never heard Apple have serious bloatware... (except Apple Maps)

35. yyzamin

Posts: 382; Member since: Aug 26, 2015

Most stock apps can be unistalled in ios 10...

39. jeroome86

Posts: 2314; Member since: Apr 12, 2012

Carrier bloat must go away. Verizon must stop replacing OEM apps with their own crap. Put it in the App Store. The nerve of them c-suckers.

5. Babadook

Posts: 230; Member since: May 24, 2016

EDIT - Carriers**

20. zeeBomb

Posts: 2318; Member since: Aug 14, 2014

Why Ming Chi when you can rely on Mark Gurman?

30. xondk

Posts: 1904; Member since: Mar 25, 2014

The bloatware term gets used a _Lot_ of late, so could you perhaps explain what you see as bloat, personally I do not count things that are 'default' such as apps that do various normal things, I more count for example, pre installing a game as bloat, an app that can have a use for some people, is in my book not bloat, a game is just a game entertainment, let me chose that on my own :/

31. tedkord

Posts: 17414; Member since: Jun 17, 2009

Any app that an individual doesn't want or use is bloat, whether it be a game or not.

33. xondk

Posts: 1904; Member since: Mar 25, 2014

I suppose, though by that definition, bloatware is everywhere on all devices regardless of brand, and is not going to go away.

34. trojan_horse

Posts: 5868; Member since: May 06, 2016

Bloatware is an unwanted or unnecessary App or feature. So, bloatware is subjective.

36. yyzamin

Posts: 382; Member since: Aug 26, 2015

All apps should be uninstallable like they are on ios10

6. NarutoKage14

Posts: 1327; Member since: Aug 31, 2016

Well, so far all reports indicate fewer sales than last year.

19. ibend

Posts: 6747; Member since: Sep 30, 2014

and apple will reveal >100millions shipping number before this quarter end... just to keep their investor from running away, lol...

27. coldspring22

Posts: 349; Member since: Feb 28, 2015

Yea Tim cook like to exaggerate iphone sales by channel stuffing, but it will have to be a mega channel stuffing! Already Gfk (german research firm) report iphone 7 sales are down 25% YOY in Europe and Asia!!

9. LebronJamesFanboy

Posts: 671; Member since: Mar 23, 2013

This is completely expected. Stay calm everyone :).

10. lyndon420

Posts: 6826; Member since: Jul 11, 2012

Last year's model has a headphone jack. The idea is to get more features or at least more value with an upgrade. Not surprised by the dwindling interest.

11. SonyFindOneDroidple

Posts: 865; Member since: May 11, 2013

Who would want an ugly phone with huge bezels?

14. EC112987

Posts: 1216; Member since: Nov 10, 2014

Everyone who's waiting for the new pixel phones lmao but all jokes aside everyone is entitled to what they like.

26. trojan_horse

Posts: 5868; Member since: May 06, 2016

Nah, the new Pixels' bezels, though big, are still smaller than the iPhone's!

13. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

Good, less and less people falling for the reality distortion field...

24. Wiencon

Posts: 2278; Member since: Aug 06, 2014

Butthurt...butthurt never changes

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