Tim Cook 'Optimistic' About iPhone 7 Sales, Sees 'Signs That are Positive'

During today's third quarter earnings call, Apple CEO Tim Cook told investors that he's "very optimistic" about prospective iPhone sales this fall, despite rumors suggesting the device will introduce only minor changes.

In response to a question about speculation that iPhone upgrade rates will be low in 2016 based on circulating rumors that the iPhone 7 will mark only a modest update to the iPhone 6s, Cook said he sees "so many signs that are positive" that point towards solid sales numbers.

iPhone 7 Space Black

A mockup of the iPhone 7

I don't want to talk about new phones that aren't announced. That aside, what we have seen -- in past tense or in current tense -- on the upgrade rate is that the iPhone upgrade rate for the iPhone 6s is similar to the iPhone 5s. [...]

The iPhone 6 was significantly higher than that and it likely accelerated upgrades that would have been in the current year ahead of those. So what the future holds, we'll see, but I'm very optimistic about the future because I see so many signs that are positive.

As for the signs in question, Cook pointed towards an install base that has gotten "incredibly large," a switcher rate that continues to grow, a smartphone penetration rate that's only at 42 percent, changes coming in iOS 10, and the growing importance of the smartphone itself as it becomes "even more instrumental and important to people's lives."

On that last point, Cook said he expects AI to play a major role in turning the iPhone into an essential device that people can't live without. "As the iPhone becomes more and more your assistant, you're not going to leave without it," he said. "I see all of those things as vectors that are incredibly positive," he continued.

According to Cook, Apple will excel at AI because of the company's focus on user experience, which will drive people to adopt Apple devices. Apple is continually working to improve its virtual assistant Siri, and Cook's comments hint at Apple's continued focus on the service.

As the smartphone itself becomes more essential to customers' day-to-day lives, we think people will put more and more focus on what they're buying. The thing Apple does best is providing a killer user experience that's integrated across the entire product line, and that becomes more important and really plays to our advantage.

I think the deployment of AI technology is something we will excel at because of our focus on user experience. So I like that.

Apple will unveil its next-generation iPhone 7 this fall, likely in September. While the device is expected to have a design similar to the design of the iPhone 6s, it will feature camera improvements, a better processor, improved water resistance, no headphone jack, and more.

Related Forum: iPhone

Popular Stories

2007 iPhone

Apple Discontinuing This 18-Year-Old iPhone Feature

Saturday February 8, 2025 3:51 pm PST by
The end of an 18-year era is on the horizon for the iPhone. Apple reportedly plans to announce a new iPhone SE as soon as next week, and the device is expected to feature a full-screen design with Face ID, instead of a Touch ID home button. That means Apple will no longer sell any new iPhone models with a home button, for the first time since the original iPhone launched. The home button...
oppo find n5 fingers

World's Thinnest Foldable Phone Launches Next Week

Monday February 10, 2025 3:05 am PST by
Oppo has confirmed a February 20 global launch for its Find N5, which the company claims is the world's thinnest device in the foldable phone category. The phone is expected to be re-branded as the OnePlus Open 2 in the US. The Chinese vendor has been teasing the device in the last few weeks, touting its waterproofing and nearly invisible display crease, and highlighting its thinness by compa...
m2 macbook air blue

M4 MacBook Air Release Continues to Appear Imminent

Monday February 10, 2025 10:56 am PST by
There continue to be signs of a new MacBook Air with an M4 chip, indicating that we could see the machine launch in the not too distant future. A private account on X today shared the identifiers that the MacBook Air will use, and those identifiers correspond to the M4 chip. According to the source, both the 13-inch MacBook Air and the 15-inch MacBook Air will be equipped with Apple's...
sequoia

Apple Releases macOS Sequoia 15.3.1

Monday February 10, 2025 10:11 am PST by
Apple today released macOS Sequoia 15.3.1, a minor update to the macOS Sequoia operating system that came out last September. macOS 15.3.1 comes a few weeks after the launch of macOS Sequoia 15.3. Mac users can download the ‌‌‌macOS Sequoia‌‌‌ update through the Software Update section of System Settings. Apple has also released macOS 13.7.4 and macOS 14.7.4 for those who are...
watchOS 11 Thumb 2 1

Apple Releases watchOS 11.3.1

Monday February 10, 2025 10:04 am PST by
Apple today released watchOS 11.3.1, a minor update to the operating system that runs on the Apple Watch. watchOS 11.3.1 is compatible with the Apple Watch Series 6 and later, all Apple Watch Ultra models, and the Apple Watch SE 2. watchOS 11.3.1 can be downloaded by opening up the Apple Watch app and going to General > Software Update. To install the new software, the Apple Watch needs to...
apple silicon mac lineup 2024 feature purple

Apple Increases Mac Trade-In Values for a Limited Time

Sunday February 9, 2025 3:53 pm PST by
Apple today increased its estimated trade-in values for select Mac models in the United States, with the full changes outlined below. Apple says the extra trade-in credit for select Macs is available with the purchase of an eligible new Apple device through April 2. The trade-in values increased by between $10 and $50. Model New Value Old Value MacBook Pro Up to $925 ...
Powerbeats Pro 2 Orange

Powerbeats Pro 2 Given to Customer Early, Expected to Debut Tomorrow

Monday February 10, 2025 7:42 am PST by
Apple's long-awaited Powerbeats Pro 2 are finally expected to be announced this Tuesday. Ahead of time, one lucky Walmart customer was able to get their hands on the earbuds early, according to a since-deleted Reddit post over the weekend. A leaked image of the Powerbeats Pro 2 in Electric Orange "My local Walmart had them in the cage," the Reddit user explained. "I asked if I can buy them...
iOS 18

Apple Releases iOS 18.3.1 With Bug Fixes

Monday February 10, 2025 10:09 am PST by
Apple today released iOS 18.3.1 and iPadOS 18.3.1, minor updates for the iOS 18 and iPadOS 18 operating systems that came out last September. iOS 18.3.1 comes two weeks after Apple released iOS 18.3. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. Apple has also released iPadOS 17.7.5 for those still running...

Top Rated Comments

Asarien Avatar
112 months ago
* Clunky, ugly iOS? Check.
* Potentially clunky, ugly iPhone 7? Check.
* Likely still lacking weather resistance? Check.
* Protruding camera? Check.
* Possibly no headphone jack? Check.
* No concrete "can't-live-without" feature? Check.


Great job, Tim. Day-one buy.
Score: 63 Votes (Like | Disagree)
DrumApple Avatar
112 months ago
Lol what is he gonna say? "It's crap. The future looks terrible. The iPhone 7 will not sell well. Sell your stock now!"
Score: 38 Votes (Like | Disagree)
Glassed Silver Avatar
112 months ago
The reality distortion field is beginning to bend inwards.

Glassed Silver:mac
Score: 32 Votes (Like | Disagree)
brinary001 Avatar
112 months ago

On that last point, Cook said he expects AI to play a major role in turning the iPhone into an essential device that people can't live without. "As the iPhone becomes more and more your assistant, you're not going to leave without it," he said. "I see all of those things as vectors that are incredibly positive," he continued.
I love ya Tim, but I still only use Siri about once or twice a month...
Score: 30 Votes (Like | Disagree)
unobtainium Avatar
112 months ago
No headphone jack, NO SALE!!!! Blah, Blah, Blah!

Time and time again we hear the same thing. If it isn't people complaining about the lack of a headphone jack or the floppy drive or SCSI.

In a few years no one will bat an eye about not having a headphone jack.
Sorry, but this is quite different. The floppy disk had a superior alternative. The headphone jack does not. Bluetooth headphones suck. They need to be charged, they play audio at lower quality, they frequently lose their connection or skip, and they're more expensive.
Score: 21 Votes (Like | Disagree)
KidAKidB Avatar
112 months ago
No headphone jack, NO SALE!!!! Blah, Blah, Blah!

Time and time again we hear the same thing. If it isn't people complaining about the lack of a headphone jack or the floppy drive or SCSI.

In a few years no one will bat an eye about not having a headphone jack.
The floppy drive and SCSI were both dead technology which had better replacements at the time. The same cannot be said for the headphone jack. Wired headphones offer better sound than Bluetooth and at least work with all your equipment rather than needing a stupid dongle.
Score: 19 Votes (Like | Disagree)