Early in 2016, tech giant Apple has acknowledged a great decline in their pilot iPhone sales. Many analysts and tech followers are expecting a continuous decline in iPhone sales for the rest of the year, noting that the new iPhone 7 is not that much of an upgrade from the powerful iPhone 6s.
However, a team from BMO Capital Markets led by analyst Tim Long is expecting a massive influx of the upcoming iPhone’s sales. Why do they think otherwise, when Apple, the brand itself, has admitted such decline?
According to the team’s research, Apple has a huge base of users whose phones are at least two models earlier than its flagship. Long’s team is projecting that about 25 percent of the current user base is going for an upgrade. This audience will approximately buy about 120 million phone units.
In recent years, iPhone sales saw an average of 17 percent of iPhone users upgrading to the latest model; 58 percent of them upgrade after a year; and 22 percent after two years. Only 2 percent of all iPhone users hang on to their beloved older handsets.
Apple’s next phone may not be what fans have been waiting for, but data suggests that it’s time for iPhone users to embrace the big change. But what those in the tech world are really waiting for is the release of the 2017 iPhone that will mark the 10th year of Apple’s well-loved flagship.
Hi, I’m Steve Sorensen, and I’m fascinated about how the biggest companies have grown in net worth. I also write a lot about anything related to business and investment. Know more about my interests by following me on Twitter.