Another Analyst Thinks Apple’s iPhone Sales Have Peaked

Notably, Morgan Stanley’s star technology analyst Katy Huberty now predicts that iPhone sales will fall 6% next year to 218 million devices – down from 231 million in 2015. For the past two fiscal years, Apple’s iPhone has gone from 56% of its revenue haul to 66% on the back of tremendous growth from the product amid struggling performance from the rest of the company. If iPhone sales fall year-over-year, it would mark the first time that has happened – ever. More broadly, though, Apple’s stock has been beaten down as a result of increasing bearish sentiment. This is partially because the device is hotly anticipated by Apple’s loyal customers, while industry pundits are debating whether the smartphone will be as popular as this year’s iPhone 6s and even last year’s iPhone 6 and 6 Plus. Sales estimates for 2016 from Morgan Stanley.

There are several reasons why the iPhone might be peaking. “Smartphone touch controller IC makers are focused on developing new features to spur growth in the maturing touch panel market”. It already released bigger iPhones, signed on with China’s largest carrier and unveiled a lease program that encourages customers to get a new iPhone every year.

Best Buy is trying to woo holiday shoppers by offering the latest iPhone for a buck. And while we’re unsure if this will introduce new users into Apple’s ecosystem or merely cannibalize higher-priced iPhones, it’s a material change from current models.

With all the new developments surrounding the new iPhone 7, experts say that if it’s true, we shouldn’t expect the new handset to roll out until at least September of 2017. As predicted by KGI Securities analyst Ming-Chi kuo, iPhone 6c will have an expected sale of more than 20 million phones next year.