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Strong iPhone 7 Plus demand still not enough to halt sales decline

Strong demand for the iPhone 7 Plus still isn’t enough to turn around a decline in iPhone sales, according to one reliable analyst. Apple’s latest device may not even outsell the iPhone 6s, which was responsible for the company’s first decline in revenue in 13 years.

It seems as though there is incredibly strong demand for Apple’s latest device, what with most models — especially the Plus-sized options and those coated in jet black — proving difficult to get hold of during the launch period.

It’s thought sales have also been boosted slightly by Samsung’s worldwide Galaxy Note 7 recall, which meant the South Korean company’s newest phablet was impossible to obtain for over a month. But we shouldn’t read too much into all this.

According to reliable KGI Securities analyst Ming-Chi Kuo, Apple is still going to suffer a year-over-year decline in iPhone shipments for 2016. He expects the shipment volume to be lower than that for iPhone 6s in 2015.

The new jet black color option has helped boost iPhone demand somewhat, accounting for around 30 to 35 percent of pre-orders worldwide. In China, it has accounted for 45 to 50 percent. However, Apple is unable to manufacture this model as quickly as the others.

“The initial iPhone 7 supply shortage was due to better-than-expected demand for the iPhone 7 Plus and undersupply of jet black casings caused by a poor production yield rate of 60-70%,” writes Kuo in his report. “Overall demand is still weaker than that for the iPhone 6s.”

This news won’t please Apple investors, who have been waiting for the company to deliver something big that can turn iPhone sales around. However, we all expected this year’s refresh to be a relatively small one, while next year’s is likely to be a lot more significant.

Article source: http://www.technobuffalo.com/2016/09/26/strong-iphone-7-plus-demand-still-not-enough-to-halt-sales-decline/