Munster: Ignore the shorter lines, Apple is experiencing "slight growth" in iPhone 7 demand

Munster: Ignore the shorter lines, Apple is experiencing
Piper Jaffray analyst Gene Munster sees clues in today's launch of the Apple iPhone 7 and Apple iPhone 7 Plus that tell him to expect "slight growth" in iPhone sales this year. Some might consider that slight growth to be something of a surprise considering today's reports of smaller lines seen outside of Apple Stores. 

For example Piper Jaffray estimates that 400 people were waiting outside Apple's 5th Avenue flagship store in the Big Apple on Friday morning. That compares to the 650 that were outside the store during last year launch date, and the 1,880 that lined up outside the store in 2015 for the release of the Apple iPhone 6 and Apple iPhone 6 Plus. This morning, only 30 hearty souls took a place in line outside the Apple Store on Apple's Cupertino campus.

But the lines really don't serve as an indicator of iPhone demand anymore. The carriers have their own deals and are increasingly hijacking iPhone orders away from Apple. Carrier pre-orders were strong this year, especially at Sprint where reservations were up earlier by 375% year-over-year. T-Mobile says that its pre-orders were up 400% from 2014's figures. Driving these increases is the free 32GB Apple iPhone 7 deal that every carrier is offering in one form or another. The bottom line is that the consumer has to pay $650 in advance for the 'free' iPhone 7, and is reimbursed on a monthly basis usually via a bill credit. Because the reimbursement takes 24 months to complete, guess what? You're locked in for 24 months. Funny how that works.


Munster has an overweight rating on Apple's shares with a target of 151. The stock closed today at $114.92, down 65 cents or .56%.


source: Barron's

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iPhone 7
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iPhone 7 Plus
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66 Comments

1. trojan_horse

Posts: 5868; Member since: May 06, 2016

iPhone7/Plus should not have great sales. No! Not worth it.

3. Bm888

Posts: 517; Member since: Jul 06, 2015

I'll go slightly off Bobbybuster way ..."No one makes with IOS ™ *

4. Bm888

Posts: 517; Member since: Jul 06, 2015

money*

8. trojan_horse

Posts: 5868; Member since: May 06, 2016

My point wasn't about not wanting Apple to make profit. My point was not wanting them to make it off the users who own the 6S and 6S Plus, because I don't think it's worth upgrading. But for those rocking the 2014 iPhones and earlier, the iPhone 7/7 Plus is definitely worth it.

21. sgtdisturbed47

Posts: 965; Member since: Feb 02, 2012

For anyone that wants to buy the 7/Plus, it's definitely worth it for them to upgrade because it is a new model. Not everyone wants to keep the same phone for 2 or 3 years. Not to mention the fact that people have to right to purchase whatever they like, regardless of if it's incremental upgrades. ALL smartphones these days are incremental upgrades because there's not much room for change and growth. It plateaued and the only major changes anymore are camera, processor, screen quality, sound, and sometimes build quality. Certain fluff features are tossed in for fun, but for the most part it's the same upgrades year after year for iPhone and Android phones.

10. trojan_horse

Posts: 5868; Member since: May 06, 2016

??? @Bm888 My point in post #1 wasn't about Bobbybuster's way.

9. PHYCLOPSH

Posts: 650; Member since: Jun 28, 2014

I have a good friend in Cupertino who works for Apple and you know what he told me? The real reason why Apple removed the headphone jack is.... [Drum roll please] So that next year they can sell you an iPhone 8 with a headphone jack (the headphone jack will be considered one of the greatest new innovations of the iPhone 8). No joke. These people at Apple - they're sick.

11. kiko007

Posts: 7493; Member since: Feb 17, 2016

If you're going to lie......at least make it plausible. You and I both know you: A) Live no where near Cupertino B) Don't have friends Why all the fibbing??????

15. PHYCLOPSH

Posts: 650; Member since: Jun 28, 2014

A) I'm from the Bay Area B) I have lots of friends, especially in Cupertino C) That's what I was told. Believe it or don't.

17. darkkjedii

Posts: 30904; Member since: Feb 05, 2011

That sound like a flat out lie.

18. PHYCLOPSH

Posts: 650; Member since: Jun 28, 2014

That sounds like the first stage of grieving.

46. AlikMalix unregistered

That was a really lame joke.

49. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

Gonna bookmark this thread for future reference. I wouldn't put it past apple to pull such move, after all, this is the same company that has backpedaled on many of their sayings....

55. whatev

Posts: 2156; Member since: Oct 28, 2015

Omg, this comment is so lame I almost feel embarrassed for you :-/

63. Skimshaddy

Posts: 126; Member since: Feb 23, 2016

You got me laughing so hard. BUT hey never know ;)

65. FBIsurveilance

Posts: 43; Member since: Aug 10, 2014

Well, once people said there was no way in the world Apple's going to release the ugly iPhone 6. Then people said there was no way in the world Apple's going to release an iPhone without a headphone jack. Now don't think for a second this isn't impossible. Because, Apple's reason for the removal was lack of space for the new taptic engine. Next year they'll have an innovative smaller taptic engine allowing them to re-allocate space for 3.5mm jack again. With Apple's 'courage', nothing is impossible.

62. piyath

Posts: 2445; Member since: Mar 23, 2012

But it's still worth than the burning Note 7... lol

2. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Translation: "Yea guys, calm down and don't sell the stock....please don't sell your stock." Seriously, they are really trying to put a lot of lipstick on this pig. I mean what is even the difference between an iPhone 6 and iPhone 7 other than the A10. Still, their best advocate for this is the two smallest carriers announcing greater numbers than 2 years ago. The two biggest carriers are fairly quiet in all of this, but we'll give wall street the benefit of the doubt....cause they'll probably need it soon.

5. bucky

Posts: 3774; Member since: Sep 30, 2009

Lol you are working full time lately in apple articles.

7. kiko007

Posts: 7493; Member since: Feb 17, 2016

The unemployed need something to do......am I right? Let him have his fun lol.........

23. 14545

Posts: 1835; Member since: Nov 22, 2011

Speaking of unemployed, how are you doing Room Temp? Did you find someone to pay you today to wait in line for their new iPhone?

27. kiko007

Posts: 7493; Member since: Feb 17, 2016

Speaking from experience I see :D........I don't wait in line for a phone. There are these things called "pre-orders" and they make it less time consuming.

33. 14545

Posts: 1835; Member since: Nov 22, 2011

Ah, no need to deflect simple one. Would you like to see a copy of my $3000 paycheck from last week? You don't have to lie, I get you had to make money to support your special fruit company. I know it's tough for you when you can't even afford it with one month of your government assistance.

37. kiko007

Posts: 7493; Member since: Feb 17, 2016

That's great.......who are you again?

40. 14545

Posts: 1835; Member since: Nov 22, 2011

Your worst nightmare. I love you.......

13. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Because this year is very special .... I mean iFans are reaching for new heights of stupidity. Their cult releases a phone which is EXACTLY the same as the last one, and they actually buy it paying full price again. Just down right hilarious, no chance I'm sitting this one out. New SOC, great. Same look Same RAM Same camera Same battery Same screen No headphone jack (and with included headphones you can't use with any other type of device other than iOS devices) aaaaaand in Black iFans lose their minds and can't stop drooling over the upgrade. (They added another camera to the bigger model which does nothing at the moment other than take a 2x zoomed in photo, so please pay another $100 for an additional $2 camera)

43. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Beat the drum, drummer boy. Let me beat with you. They take the headphonesame and cut the cord. Now you have pies hanging from your ears? Who at Apple thought this was cool?

14. darkkjedii

Posts: 30904; Member since: Feb 05, 2011

More RAM, better front camera, better rear camera, better OS, water resistance, stereo speakers, 7000 series aluminum, 3D touch, new home button, dual ion glass, faster processor, quad core vs dual core.

22. combatmedic870

Posts: 983; Member since: Sep 02, 2015

IPhone 7 has the same ram as the 6s, the 7s camera is still nothing special, the 6s has the same OS, the 6s is made from 7000 series aluminum. New home button is just different. To some may not be an upgrade. But yes. A faster processor.

28. darkkjedii

Posts: 30904; Member since: Feb 05, 2011

He said 6 not 6S. Reading is fundamental.

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