iPhone sales to drop for the first time in Apple’s history in 2016

The iPhone 6S and 6S Plus handsets released in September this year are packed with many upgraded features.Hence, both handsets have received a positive reception from users and critics. However, Katy Huberty, a market analyst from Morgan Stanley, has predicted that the iPhone sales will fall in the next year.

Apple has been making consistent profits by selling its iPhones across the globe since 2007. However, Huberty is of the view that for the first time in the history of the company, the sales of the iPhones will drop by 5.7 per cent by the fiscal year 2016.

She has added that in the fiscal year of 2015, the Cupertino company sold 231.1 million handsets. However, the forecast for the fiscal year 2016 indicate that the sales of the iPhone units will drop to 218 million, Business Insider reported. A decline in sales in the coming year may lead to negative sales results in the following years.

Huberty specifically cited the probable reason that could lead to the drop in iPhone sales is not because of weak demand, but it is mainly due to high inventory. Hence, Apple is likely to cut down on the iPhone component orders by 10 per cent next year.

It does not mean that Apple as a smartphone brand is losing its shine. However, the analyst has made the prediction by considering the worst-case scenario of iPhone sales. Another reason that can possibly cause low sales in 2016 is higher price tags of iPhones in major markets like China.

An analysis conducted by the Pacific Crest in August this year advised the public to be careful in investing as iPhones sales are expected to decline next year. Well-known market analyst from KGI Securities, Ming-Chi Kuo, also recently predicted the fall of iPhone sales in 2016, Cult of Mac reports.

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