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Apple iPhone 7 Demand to Reportedly Drop In the Coming Months

8:32 am November 15, 2016 By Hammad Saleem

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It’s been around two months since Apple unveiled their latest iPhone 7 and iPhone 7 Plus across the globe.

According to KGI Securities analyst Ming-Chi Kuo, Apple iPhone 7 demand has peaked, in line with expectations, and will significantly drop in the coming months.

The analyst said the decline in the demand of the iPhone 7 will commence this month and will continue to fall even in December.

Kuo also mentioned that Apple’s overseas suppliers will revise their iPhone shipments down by 5-15 percent in November and December due to weaker demand as there aren’t any significant improvements with the new devices.

As the 4.7-inch iPhone 7, which accounts for a higher share of iPhone shipments, is in stock in the main global markets, we believe overall iPhone shipments have peaked. We think iPhone shipment forecasts will be revised down due to: (1) lower-than-expected demand due to a lack of spec surprises in the 4.7-inch iPhone 7; and (2) shorter times for delivering online orders of 5.5-inch iPhone 7 Plus, which implies slowing demand. We note that the out-of-stock phenomenon also results from fixed capacity, and is not only due to robust demand.

Surprisingly, the analyst also noted that the out-of-stock phenomenon which usually happens in the launch of the new iPhones is due to fixed capacity, and not necessarily due to high demand. Kuo also predicted of a year-over-year iPhone shipment decline in the first quarter of 2017 due to low demand and extreme competition in China.

Source: MacRumors

Filed Under: Apple iPhone, Top News

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