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Apple will reportedly be cutting iPhone orders in the next several quarters in an effort to reduce excess inventory ahead of the iPhone 7 launch. As a result, shipments will likely fail to meet Wall Street expectations, and Apple’s recent rough patch may continue until the introduction of the next iPhone.
According to analysts from independent investment bank and asset management firm Brean Capital, Apple will drop shipments in the June and September quarters of this year, shipping an estimated 40 million units – 2 million units shy of Wall Street expectations. Analysts Ananda Baruah and Shenlun Wang estimate that Apple entered 2016 with roughly 17-18 million iPhones in its inventory, and is looking to reduce inventory to around 10 million units by the iPhone 7 launch.
This may be the last rough patch for Apple, however, as the analysts also estimate that the first full quarter after the iPhone 7’s release will likely begin a pattern of five straight quarters of growth for the company – possibly more.
Baruah and Wang believe that Apple may look to break their usual iPhone release cycle this year, releasing a somewhat marginal update this coming September, with a major redesign coming about in 2017 – a rumor that has made the rounds quite a bit around the internet recently.
Many believe that 2017 will skip the release of an iPhone 7s, and head directly to the release of the iPhone 8, which may feature an all-glass, bezel-free enclosure, with Touch ID and a FaceTime Camera embedded under an all-new AMOLED display. Such a radical overhaul would certainly give users cause for excitement, and will continue to build strong momentum for the iPhone after iPhone 7 sales slow.
The iPhone 7 is expected to release near the end of this coming September. The phone is expected to feature a very similar design to the iPhone 6s and 6s Plus, with an upgraded processor, redesigned antenna bands, and the traditional 3.5mm headphone jack replaced with a quad-speaker system. The iPhone 7 Plus, however, may also see the addition of a dual-lens camera and a Smart Connector for accessories.
Are you holding out for the iPhone 7? Or are you considering picking up the iPhone 6s when it goes on sale later this year?
Let us know in the comments below!