The huge decline in iPhone sales in the last quarter has kickstarted an endless debate in the tech world that the upcoming iPhone 7 will bear the brunt of the recent slump. While most analysts stress that the next-gen smartphone would touch a record low, others assert that Apple’s flagship device might be able to bring about a massive turnaround.
There are various factors that are heavily stacked against iPhone 7. Touted to arrive only with a few new features, the handset hasn’t been able to create the same euphoria as iPhone 6. No wonder, fans have already begun to talk about the 2017 iPhone, which is expected to arrive with a brand new design.
18.1% Decline, 11.6% Year-Over-Year Slump
According to the noted Apple analyst Ming-Chi Kuo at KGI Securities, under the worst case scenario, the Cupertino-based company will ship 190 million iPhones during 2016; as against the 193 million it shipped in 2014. He added that in the best case scenario, the company could sell 205 million devices. If Kuo’s prediction holds true, then it will be a drop of 18.1 percent and 11.6 percent year-over-year decline respectively.
Kuo further said that Apple is going to be the only top five brands to see a slump in shipments in 2016.
Largest Selling Price Decline
According to Mary Meeker’s Internet Trends Report for 2016, iPhone shipments will drop 11 percent this year. However, it predicts a 7% increase in the shipments of Android devices.
As per the report, Apple’s average selling price will go down from $717 to $651 for a 9 percent decline, which is the largest selling price slump the company has ever seen.
Glimmer of Hope
Rejecting the predictions of several analysts, BMO Capital Markets analyst Tim Long has stated that the sales of iPhone 7 will make an astounding record. In his report, Mr. Long has stressed that 25% existing iPhone users are ready to upgrade their device, which could play a major role in propelling the shipments of the handsets.
Going by the wind, the next-gen iPhone won’t be a major hit in terms of shipments. Lacking in attractive features, the handset will, more or less, fail to impress the prospective buyers. That apart, the recent slowdown in China will continue to be a huge roadblock for the device.
In the cut-throat competition, where Android smartphones are loaded with jaw-dropping features and specs at an unbelievably low price, Apple will have to bring something really special to wade off the decline.