iPhone 7 Demand Has 'Peaked' as Shipments Forecasted to Decline Significantly Over Next Two Months - MacRumors
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iPhone 7 Demand Has 'Peaked' as Shipments Forecasted to Decline Significantly Over Next Two Months

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iphone7-plus-jetblack-select-2016Just two months after the iPhone 7 and iPhone 7 Plus launched, KGI Securities analyst Ming-Chi Kuo believes demand for the smartphones has "peaked" in line with a significant monthly shipment decline starting in November.

Kuo predicted Apple's overseas suppliers will revise down their iPhone shipments by 5-15% in November-December due to lower-than-expected demand stemming from a lack of significant improvements.

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.

In a research note obtained by MacRumors, Kuo noted that the out-of-stock phenomenon that typically follows a new iPhone launch results from fixed capacity, and is not only due to robust demand. Kuo reiterated his forecast of a possible year-over-year iPhone shipment decline in the first quarter of 2017 due to the lower-than-expected demand and fierce competition in China.

Tags: KGI Securities, Ming-Chi Kuo
Related Forum: iPhone

Top Rated Comments

npmacuser5 Avatar
npmacuser5
123 months ago
Cool is out, practical is in for me. When my current iPhone fails or otherwise does not meet my everyday needs, time to buy a new. Until then, my cool days will be less often.
Score: 10 Votes (Like | Disagree)
bbeagle Avatar
bbeagle
123 months ago
This is just how it happens in the Apple world - more people buy iPhones the moment they're released. Other non-iPhones are usually bought on impulse or when someone's previous phone dies.
Score: 6 Votes (Like | Disagree)
S
smaffei
123 months ago
iPhone 7… The "courage" to wait until next year.
Score: 5 Votes (Like | Disagree)
Mr. Dee Avatar
Mr. Dee
123 months ago
I was tempted, but I honestly said to myself, do I really need this for what I do? The Plus model would have been my choice, but I honestly didn't see the benefit. I settled for a 2 TB external drive so I could backup my MacBook Pro I purchased last year. Maybe next year I might consider it when its discounted with the launch of the iPhone 8.
Score: 4 Votes (Like | Disagree)
Oldfash33 Avatar
Oldfash33
123 months ago
Does this mean I will actually be able to walk into my local Apple store and buy one, LOL
Score: 4 Votes (Like | Disagree)
Anthjo Avatar
Anthjo
123 months ago
The whole smartphone market has peaked in general. Iphones and Androids they are all pretty good and long lasting these days, plus when you remove the carrier subsidies, than people just aren't going to rush for a new phone every year like before.
This. Exactly.

Even midrange Androids and older model iPhones can do what the average person needs them to do, so unless you're a power user or have specific, cutting edge needs, there's no reason that compels the average person to go out and drop $750 on a phone.
Score: 3 Votes (Like | Disagree)
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