iPhone sales expected to drop in 1st half of 2017 without new SE model, Apple to put margin pressure on suppliers<div class="feat-image">
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KGI‘s
Ming-Chi Kuo is out with his latest iPhone sales numbers forecast which shows the
iPhone 7 line falling in sales for the second consecutive year. The primary drivers are weak demand in China, slow shipment volume of 4.7” iPhones in 1Q17, and the lack of a new iPhone SE in 2Q17.</p>
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<li>We are conservative about the sell-through of the 4.7” iPhone and Apple’s market share in China. As such, we estimate 1Q17 iPhone shipment volume of 40-50mn units, lower than the 51.2mn units in 1Q16.</li>
<li> Shipment volume in 2Q16 came in higher than expected thanks to upbeat demand for the iPhone SE. However, in order to keep gross margin at a high level and to avoid cannibalization of high-end models, we do not expect Apple to launch an upgraded iPhone SE in 2Q17. Without contribution from a new model, we forecast total iPhone shipment volume will reach 35-40mn units and fall YoY in 2Q17, lower than the 40.4mn units in 2Q16.</li>
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<p>Falling sales may force Apple to exert pressure on its suppliers to reduce costs starting this month or next…</p>
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iPhone sales expected to drop in 1st half of 2017 without new SE model, Apple to put margin pressure on suppliers
