Strong iPhone 7 Plus demand not enough to halt decline, says KGI

JC Torres - Sep 26, 2016, 4:00am CDT
Strong iPhone 7 Plus demand not enough to halt decline, says KGI

The prophesied slump in iPhone sales is coming, and there is no stopping it. Not even with the both expected and unexpected strong sales of the new iPhone 7 duo, particularly the iPhone 7 Plus. At least that is the forecast that noted KGI analyst Ming-Chi Kuo has just made. While he has indeed improved his estimates of the total sales for the iPhone 7 and iPhone 7 Plus, overall he predicts that the numbers will be lower than the iPhone 6s, as things are not as what they seem.

For one, the analyst is basically saying that Apple has a lot to thank Samsung for. The recent fiasco surrounding exploding Galaxy Note 7’s has helped increase confidence, outlook, and sales of the iPhone 7 and 7 Plus. That’s not to say, of course, that that’s the only reason why.

According to the KGI report, the iPhone 7 Plus’ dual cameras have been particularly popular among buyers, which probably bodes well for future models sporting the same feature. The new Jet Black is also hot, despite warnings about scratching. Ironically, those two factors might have also negatively affected iPhone 7 shipments.

Earlier reports of supply shortage for the iPhone 7 isn’t exactly because strong demand, believes Kuo. One reason is because of the better-than-expected demand for the iPhone 7 Plus and its dual cameras. But another reason is because the Jet Black color which is in high demand as well is actually harder to make. Production yield is estimated to be 60-70%.

While KGI raised its iPhone 7 shipment forecast from 60-65 million to 70-75 million, the numbers steal look bleak for this year’s generation as a whole, falling below that of the iPhone 6s. Even Apple itself has already predicted this, though it will naturally not share solid numbers.

VIA: 9to5Mac

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