Apple’s iPhone 7 shipments to drop by over 5m units by 1st half in 2017
Apple Technology Company, manufacturer of Apple iPhone 7 and other technological devices is expected to see a drop by over five million units in the shipments of its new iPhone 7 models in the first half of 2017.
This is coming on the heels of the company’s decision to reduce the orders from component suppliers for its new Apple iPhone 7 models because of the weak demand of the phone in many markets across the world.
It was further gathered that some of the major reasons that could facilitate the reduction in demand of the Apple iPhone 7 is due to the uncertainty over the trade policy with Donald Trump’s election, as well as rising component costs.
Apple Technology Company recently reduced the orders from its component suppliers as they expect the shipments of Apple iPhone 7 in the first half of 2017 to be at least five million units lower than in the second half of 2016.
Demand for iPhone 7 devices in China and other markets has decreased significantly since the launch in September, sources from Taiwan’s handset supply chain revealed.
The new device did receive an initial boost from Samung’s Galaxy Note 7 battery problem, but that lift was short term and has since faded.
Pacific Crest analyst Andy Hargreaves sees a number of near-term risks impacting the iPhone’s gross margins, including currency fluctuations (due to the strong US dollar), uncertainty over trade policy with Donald Trump’s election, as well as rising component costs.
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