iPhone 7 Shipments Expected to See Significant Decline

In an research note issued by KGI Securities analyst Ming-Chi Kuo, it has been predicted that demand for the iPhone 7 and iPhone 7 Plus has already “peaked”, just two months after their launch, which will lead to a significant monthly shipment decline starting in November, MacRumors is reporting.

The analyst says that Apple’s suppliers will revise down their iPhone shipments by nearly 15% over the next two months due to lower-than-expected demand.

Iphone 7

Kuo added that the “out-of-stock phenomenon” that typically follows a new iPhone launch results from fixed capacity, and is not only due to an overwhelming demand. He also reiterated his forecast of a possible year-over-year iPhone shipment decline in Q1 of 2017.

“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 addition to market saturation, Apple is also predicted to see a decline in iPhone shipments due to growing competition from Chinese smartphone manufacturers.