Japanese website Nikkei is continuing the 2016 doom and gloom sentiment surrounding iPhone sales, reporting that an unnamed source has confirmed that sales figures and shipment numbers for Apple's smartphone lineup will see the first year-over-year decline since the iPhone debuted in 2007. The website cites "lukewarm demand for a new model" and a lack of innovation as the major reasons behind the predicted sales decline.

Specifically, iPhone shipments in 2016 are estimated to total between 210 and 220 million units, which would be a drop off of as much as 8.6 percent from 2015. The "people familiar with the matter" within Hon Hai Precision Industries noted that one of the company's executives described a lower iPhone demand for the remainder of this year, lasting "until at least early next year."

iPhone 7 Plus concept deep blue

iPhone 7 Plus design mockup in "Deep Blue"

"Hon Hai Precision Industry Chairman Terry Gou has told his staff that the demand for iPhones will remain feeble until at least early next year," a source said. Hon Hai, better known as Foxconn Technology Group, declined to comment.

Gou told Chinese Premier Li Keqiang in China in late May that the company's overall orders were falling this year, although Foxconn did receive a sudden rush of orders in April and May. Foxconn makes about 70% of iPhones sold globally.

Whether that means the supplier would begin working on the expected mega-cycle "iPhone 8," or another mid-cycle upgrade similar to the iPhone SE, early in 2017 is unclear. Nikkei's sources opine that Apple's attempt to shake up an upgrade cycle with no notable new hardware features by introducing new colors -- seemingly referring to the recently rumored Deep Blue -- proves "that the company now has no way of breaking out of the current doldrums."

Still, the 5.5-inch iPhone 7 Plus could come with a few notable new hardware revisions, namely a dual-lens camera that would allow for 2-3x optical zoom capabilities, clearer and brighter images, and the ability for users to refocus an image after taking a picture. Otherwise, the handsets are expected to remain largely in line with the iPhone 6s design, besides the potential removal of the headphone jack and redesigned set of antennae bands.

Top Rated Comments

JimmyJimmyYam Avatar
72 months ago
If the headphone jack goes, and the dual camera is indeed limited to the Plus model, "new colors" isn't going to be anywhere near enough to tempt this longtime iPhone user to upgrade.
Score: 8 Votes (Like | Disagree)
576316 Avatar
72 months ago
I've pretty much made the decision to hold on to my 6 Plus for a third year after the snore fest that the next iPhone looks to be. Holding on to hope that the rumours about the 2017 redesign are true. The iPhone is starting to feel and look outdated. I even considered switching to a Galaxy S7 Edge but I'm too heavily invested in the Apple ecosystem and everything would fall apart. Also the fact I hate Samsung, Android and Google. But the S7 Edge does look pretty cool compared to the iPhone.

I get that the iPhone design is iconic but they could easily put a modern twist on it. Remember when the iPhone 4 got announced and everyone went crazy because it was such a departure from what we'd seen before? We haven't had a moment like that for a while. They could even make the iconic home button digital. Introduce an edge to edge display. Just make it actually look modern! I'm a huge Apple fanboy but slowly becoming frustrated and bored.
Score: 7 Votes (Like | Disagree)
Porco Avatar
72 months ago
I'm starting to think that when the iPhone 7 is released the Mac Rumors Buyer's Guide entry will be updated to 'Don't Buy'.
Score: 6 Votes (Like | Disagree)
Stella Avatar
72 months ago
Dropping sales, plus a saturated market should be an incentive for Apple to be pushing out innovative phones, rather than different colours, and the usual "thinner, faster, slimmer" line.
Score: 2 Votes (Like | Disagree)
Smith288 Avatar
72 months ago
Apple will eventually need to let go of the year to year design consistency and start adding in innovation to the hardware and software. Start expanding its capabilities that's been capable since jailbreaks were done all the way back in 2008.

Eventually, though, some of that innovation boom just levels out. But that's why apple was apple. They were able to innovate and provide something we didn't know we wanted. That seems to have gone with Jobs.
Score: 2 Votes (Like | Disagree)
Cheeseball13 Avatar
72 months ago
I'm focusing on the wrong thing, but that deep blue iPhone mockup sure is purdy.
Score: 2 Votes (Like | Disagree)

Popular Stories

macbook pro 13 inch banner

Apple Planning Five New Macs for 2022, Including Entry-Level MacBook Pro Refresh

Sunday December 5, 2021 7:55 am PST by
Apple is working on five new Macs for launch in 2022, including a new version of the entry-level MacBook Pro, according to Bloomberg's Mark Gurman. In the latest edition of his "Power On" newsletter, Gurman said that he expects Apple to launch five new Macs in 2022, including: A high-end iMac with Apple silicon to sit above the 24-inch iMac in the lineup A significant MacBook Air...
apple watch series 7 aluminum colors

2022 Apple Watch Lineup Rumored to Include New Apple Watch SE and 'Rugged' Model for Sports

Sunday December 5, 2021 8:22 am PST by
Apple is planning an entire revamp of its Apple Watch lineup for 2022, including an update to the Apple Watch SE and a new Apple Watch with a rugged design aimed at sports athletes, according to respected Bloomberg journalist Mark Gurman. Writing in the latest installment of his Power On newsletter, Gurman said that for 2022, alongside the Apple Watch Series 8, Apple is planning an update to ...
airtag in hand

Apple AirTag Linked to Increasing Number of Car Thefts, Canadian Police Report

Friday December 3, 2021 7:10 am PST by
Apple's AirTags are being used in an increasing number of targeted car thefts in Canada, according to local police. Outlined in a news release from York Regional Police, investigators have identified a new method being used by thieves to track down and steal high-end vehicles that takes advantage of the AirTag's location tracking capabilities. While the method of stealing the cars is largely ...
1x 1

Apple CEO Tim Cook 'Secretly' Signed $275 Billion Deal With China in 2016

Tuesday December 7, 2021 6:49 am PST by
Apple CEO Tim Cook "secretly" signed an agreement worth more than $275 billion with Chinese officials, promising that Apple would help to develop China's economy and technological capabilities, The Information reports. In an extensive paywalled report based on interviews and purported internal Apple documents, The Information revealed that Tim Cook personally forged a five-year agreement...
ipad air arrive feature

iPad Pro With Wireless Charging, iPad Air 5, and iPad 10 Reported to Debut in 2022

Sunday December 5, 2021 8:54 am PST by
Apple is preparing to update three of its iPad models in 2022, including the entry-level iPad, iPad Air, and iPad Pro, according to Bloomberg's Mark Gurman. In his latest "Power On" newsletter, Gurman reiterated Apple's plans to release a new iPad Pro in 2022, featuring a new design and wireless charging, and clarified the company's intention to release new versions of the entry-level iPad...
2021 MBP SD Card Error Feature

Some SD Cards Not Working Properly With 2021 14 and 16-Inch MacBook Pros

Monday December 6, 2021 2:02 pm PST by
The SD card reader slot on the new 14 and 16-inch MacBook Pro models is not functioning as expected with some SD cards, according to multiple reports on the MacRumors forums. In a long complaint thread, MacRumors readers have detailed the issues that they're having with some SD cards, and there seems to be little consistency between reports and affected SD cards. Some SD cards crash and...
airpods pro blue holiday 3

Deals: AirPods Pro With MagSafe Available for $169.99 and Christmas Delivery on Amazon ($79 Off) [Update: Expired]

Monday December 6, 2021 6:03 am PST by
Amazon today has Apple's AirPods Pro with MagSafe Charging Case for $169.99 and delivery before Christmas Day, down from an original price of $249.00. This is $10 off from the rock bottom $159.99 price tag we tracked on Black Friday and Cyber Monday, and still a great deal for anyone shopping this holiday season. Note: MacRumors is an affiliate partner with Amazon. When you click a link and...
life360 app

Tile Buyer Life360 Selling Precise Location Data on Millions of Users

Monday December 6, 2021 1:05 pm PST by
Location tracking service Life360 has been selling the precise location data of tens of millions of its users, according to a new report shared by The Markup. Life360 bills itself as a "family safety platform" app that is meant to allow family members to keep tabs on one another with tracking software that's installed on smartphones, and there are both Android and iPhone apps. The...