Apple Could Be the Worst-Performing Top 5 Smartphone Brand in 2016

In a new research note published today by KGI Securities analyst Ming-Chi Kuo, it has been predicted that Apple may see fewer iPhone shipments in 2016 than what it saw in 2014, due to the fact that this year’s ‘iPhone 7’ will not have any “attractive” updates, 9to5Mac is reporting. The analyst continued that the Cupertino giant may see an 18% reduction in shipment growth and 3 million fewer iPhones than it sold in 2014, which could make it the worst-performing top 5 smartphone brand in 2016.

Kgi iphone stats

Kuo predicts that even if things go well for Apple, the company is expected to sell no more than 205 million iPhones this year, which is still 5 million short of the lower end of analysts’ estimate range and amounting to a 11.6% reduction in growth. He further predicts that Apple would underperform the overall smartphone industry for the first time ever this year. Kuo added that iPhone SE will have little impact on the company’s overall performance, though he raised his prediction for the device from 12 million shipments to 18 million shipments.

“Given the fact that shipments fell YoY for the first time in 1Q16, we don’t think large-screen replacement demand will contribute much to growth. To sustain growth, the iPhone needs to come up with more innovative features to revitalize the user experience, for example in form factor design, software and hardware specs. We don’t see many attractive selling points for iPhone 7 in 2H16 and are conservative on 2H16F shipments. While we revise up 2016F iPhone SE shipments from 12mn to 18mn units, this won’t offset overall iPhone shipments decline”.

Rumours so far have predicted that the ‘iPhone 7’ may feature a design similar to that of the iPhone 6, though it will be slightly thinner with flush rear camera and possibly see removal of the 3.5mm headphone jack.

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  • jmcd102

    So far the 3 features mentioned for the iPhone 7 are features many users are not requesting.

  • Corey Hoffarth

    Its very possible this will be the first year I don’t upgrade my phone. With the marginal updates and the through the roof prices here in Canada it just doesn’t make sense anymore

  • winnertakesteve

    Same. My 2 year contract ends this fall, and I have Fido bucks that I’m going to need to use up soon before they expire, but I still would rather wait and see what 2017 offers. Combo of boring rumours for fall 2016, more appealing rumours for 2017, and quite frankly my current smartphone is fine.

  • rob0302

    yesterday i watched the movie Jobs and reading this article today I see it in a different way than if i would have read it 2 days ago. I was aware before seeing the movie about Jobs and his attitude towards the products he created, but not to the extent that I am now. It seems that now that Jobs is gone, the company has moved away from his way of thinking and closer to how Woz wanted to do things. Woz wanted to give options and make their products fit the consumers needs (which from a strictly business perspective makes a hell of a lot of sense), whereas Jobs wanted consumers who saw the beauty and the simplicity of use in his product and wanted it because it was beautiful, regardless of the fact that it was much more expensive than the competition and actually had less functionality.
    As soon as the movie ended i turned to my girlfriend and said after watching this movie, i’m certain that Apple will begin to fall as a company. It is now run by business school graduates instead of by an artist. Without the artist, the beauty in the product will vanish and it will never be able to sustain the growth they’ve enjoyed to this point. Basically, what this article is saying is happening.