April 12, 2016 2:26 pm | Updated 5 years ago.
The iPhone sales are reported to go down this fiscal year for the first time. Owing to lower upgrade cycles, the company has also lowered its projection on earnings. It has also led to the lowering of price on its shares from $141 to $130.
The slump in the sales of iPhone can also be attributed to the launch of Samsung’s Galaxy S7 in March and also to the sale of phones from the Apple Stores which operators might not be factoring in their upgrade rates.
According to Walter Piecyk of BTIG,the replacement cycle for iPhones is increasing in the US, resulting in a decline in its sale. He deducted about 10 million units from his sales projection for the year 2016 and 2017. He further predicts that the sale of iPhone units in 2016 should be around 210 million and 220 million in 2017.The unveiling of the new updated version of the iphone will clear the doubt about the replacement cycle of these phones.
Date of Publication: April 7, 2016