According to Kuo, demand for the iPhone 7 will decline significantly between now and December. Not only that, but Kuo says that analysts have revised their predictions to reflect five to 15 percent fewer sales in November and December due to weaker demand.
“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
It is important to note it is possible the slower sales have nothing to do with a decrease in demand but is the result of a fixed capacity. Kuo also said he stands by his prediction that there will be a year-on-year decline of iPhone sales in the first quarter of 2017.
Kuo is also pretty pessimistic about sales of the phone in China, saying that while the company may be seeing a build-up of inventory before the Chinese New Year, the competition Apple is facing in China will make it hard for the company to expand its market share in 2017.
It will be interesting to see how iPhone sales are affected over the next few years by growing competition, particularly from Google with the new Google Pixel and Pixel XL.
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