Apple’s (AAPL) iPhone Sales Could Keep Dropping

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Despite Apple’s CEO Tim Cook assuring that the tech giant is returning to growth, one analyst believes the company’s sales could continue to fall.

According to KGI Securities analyst Ming-Chi Kuo, cited by 9to5Mac, the iPhone 7 line may be pressured by weak demand in China. Slower sales of the smaller version of the iPhone 7 and the lack of a new 4-inch, less expensive iPhone SE.

KGI expects 40 million to 50 million iPhones to ship in the first calendar quarter of 2017. This number is down from 51.2 million in the year-ago period, according to the 9to5Mac report.

KGI estimats that without a new iPhone SE model in the spring, that quarter could see shipments of 35 million to 40 million units. This is below the 40.4 million posted in July 2016.

It was just last month that Cook told investors in a conferance “Looking forward, the response to the iPhone 7 and 7 Plus has been very positive. It’s very hard to gauge demand, as you know, when you’re selling everything you’re making. So we’ll find out more through the quarter, but we’re confident enough to give you guys guidance that we’re returning to growth this quarter, which obviously feels very good for us.”

Disclaimer: We have no position in Apple Inc. (NASDAQ: AAPL) and have not been compensated for this article.