Morgan Stanley analyst believes iPhone sales will drop in 2016

iphone trade up with installments news apple 6s 7848
Jessica Lee Star/Digital Trends
Ever since its initial release in 2007, the iPhone has witnessed increasing sales year after year. Morgan Stanley analyst Katy Huberty, however, believes this trend will change for the worse during Apple’s 2016 financial year, reports Fortune.

According to the analyst, iPhone sales will drop by 5.7 percent during Apple’s 2016 fiscal year, which started back in October. Through the prediction, Huberty believes that Apple will sell 218 million iPhones for fiscal 2016, which would represent a decrease from the 231.1 million sold in fiscal 2015. If the forecast pans out in reality, it would mark the first time that iPhone sales would experience a year-over-year drop.

Even though Huberty acknowledged her prediction represents a worst-case scenario, Morgan Stanley’s managing director nonetheless blamed the prediction on several reasons, one of which is the already-high saturation in developed markets. In other words, the current smartphone landscape would make it difficult for Apple to sell as many iPhones as before due to people already walking around with smartphones in their pockets.

In addition, Huberty noted that the iPhone fetches a higher price tag in international markets than competing smartphones, which would theoretically make it a harder sell. Finally, Huberty based her forecast on a predicted 10 percent drop in component orders, though she believes that too much inventory and not weak demand, would be the cause of such a drop.

However, even with the weaker forecast, Huberty is still optimistic about Apple and believes that customer loyalty, research and development investment, and other revenue streams should balance out the lower iPhone sales.

Huberty’s forecast isn’t that unpopular when you consider that Kantar Worldpanel, a market research firm that keeps an eye on the smartphone market, noted that iPhone 6S sales are lower than its predecessor’s at the same point. Meanwhile, iPhone 6S Plus sales are slightly higher than its predecessor’s during the same time period, according to the firm.

Even so, Huberty’s current forecast is a stark contrast to one she made only a few weeks ago, which called for a 6.8 percent increase in iPhone sales during Apple’s 2016 fiscal year.

Deals

REI drops deals on Garmin Fenix 5 and Vivoactive 3 smartwatches

Garmin's activity trackers offer a lot of advantages for health-conscious individuals and outdoor adventurers, and with spring finally here, now’s a fine time to jump on the smartwatch bandwagon. REI’s Garmin sale is the perfect chance…
Deals

Looking to upgrade? These are the best iPhone deals for March 2019

Apple devices can get expensive, but if you just can't live without iOS, don't despair: We've curated an up-to-date list of all of the absolute best iPhone deals available for March 2019.
Cars

Tesla lets you skip the dealership, order a car from the comfort of your couch

Tesla has always bypassed traditional dealerships, and it has now adopted an online-only sales model that lets customers configure and order their car without leaving their couch. Here's what you need to know.
Deals

It’s time to check out the best Apple Watch deals for March 2019

The Apple Watch has surged to prominence in recent years. If you're in the market for an iOS wearable, we've sniffed out the best Apple Watch deals available right now for all three models of this great smartwatch.
Mobile

HMD Global admits Nokia 7 Plus handsets sent user data to China

Nokia could be in some hot water. According to recent reports, Nokia 7 models may be secretly sending data to China without the user knowing about it. Nokia says that the issue was a software bug and that it has been fixed.
Mobile

Here are the best iPad Pro keyboard cases to pick up with your new tablet

The iPad Pro range can double as laptops, but they do need proper keyboards to fill in effectively. Thankfully, there are loads to choose from and we rounded up the best iPad Pro keyboard cases right here.
Product Review

The new iPad Mini isn’t a beauty, but it performs like a beast

Apple’s new iPad Mini has beastly performance, fluid iOS 12 software, and good battery life. It also looks like it came straight out of 2015, because the design hasn’t been changed. Here's our review of Apple’s 7.9-inch tablet.
Mobile

24 must-have apps for rooted Android phones and tablets

Rooting your Android device opens up a world of possibilities, along with a few apps. Here are 24 of our favorites, so you can make the most of your rooted device and unleash the true power of Android.
Mobile

Wring the most out of iOS with the best commands for Siri

You may not know all the things you can say to Siri -- after all, Apple never released an official list of commands for its virtual assistant. Thankfully, we've compiled a list of the best Siri commands to help you out.
Computing

Breeze through security with these checkpoint-friendly laptop bags

Getting through airport security is a drag, but your laptop bag shouldn’t be. Thankfully, these checkpoint-friendly laptop bags will get you and your gear to your destination with ease.
Mobile

Flex your thumbs (and your brain) with these fun texting games

Gaming consoles keep getting more advanced, but you can still have fun with the good old Latin alphabet. Here are our picks for the best texting games, so you can make the most fun out of that limited data plan or basic cell phone.
Wearables

Alpina makes its AlpinerX smartwatch even more attractive with new colors

Alpina has introduced four new colors to its AlpinerX smartwatch range, breaking the usually sporty watch out into a more everyday casual design, and given the tech a slight makeover too.
Mobile

New gold finish makes Frederique Constant’s hybrid smartwatch flashier than ever

Frederique Constant has found considerable success with its luxury hybrid smartwatch, the Hybrid Manufacture, and has launched several new color schemes to help bring it even more attention.
Wearables

Tag Heuer’s Golf Edition smartwatch is a lot more than just a flash of new color

Tag Heuer's Golf Edition Connected Modular 45 smartwatch has a lot more going for it than just a flashy new color scheme. From the titanium body and black PVD coating to the new Golf app, this is a true special edition.