Analyst predicts drop in sales of iPhones in 2017; SE model should not be updated

Analyst predicts drop in sales of iPhones in 2017;  SE model should not be updated

As we have been following for some time, the KGI Securities analyst, Ming-Chi Kuo, has a great track record of winning bets. Now, he has released his predictions about what will possibly happen with the sales of iPhones in 2017.

First, Kuo says there is concern about sales of 4.7-inch iPhones and also in the market share occupied by Apple in China. Therefore, your bet is that in the first quarter of 2017 (from January to March), iPhones will get 40 to 50 million units sold, unlike the 51.2 million reached in the first quarter of 2016.

In the second quarter of 2016, Apple ended up having an increase in sales due to the launch of the iPhone SE. However, in order to continue with a good gross margin and avoid “cannibalization” of top-of-the-line models, the bet is that there will be no update to the 4-inch model. For this reason, sales are likely to reach 35-40 million units in the second quarter of 2017, unlike the 40.4 million units in the same period in 2016.

Knowing these drops, Apple would probably start to pressure manufacturers of the components of its devices in search of better prices and this would happen from this or next month. Some smaller vendors are likely to give in easily, while big names like Samsung and TSMC may end up giving more work. In addition to resisting the negotiations, Samsung is expected to even raise the prices of 3GB DRAM and 3D NAND because they are low on stock.

Despite the low numbers that we will possibly witness in early 2017, the biggest bets are that the “iPhone 8” (or whatever the next edition of the device will be called) will promise great changes and innovations and, with that, will bring better numbers for the Apple.

[via 9to5Mac]