Declining Apple iPhone Sales May Still Continue Says Apple KGI Securities Analyst Kuo

Although the market has witnessed declining Apple iPhone sales for the past three consecutive quarters, KGI Securities analyst Ming-Chi Kuo thinks this trend is still not over. While other analysts predict that the the number of iPhone units sold will start gaining momentum in the coming fourth quarter of this year, Apple's woes over the sales of its most popular device will continue until the first half of next year.

The declining Apple iPhone sales were slightly buoyed by the strong demand for iPhone 7 Plus from its consumers in the United States. However, the KGI Securities analyst sees a high possibility of weak demand from Chinese consumers, which will make the estimates total shipment volume of these popular iPhones to decline year on year. In a note distributed to clients reported by Business Insider on Friday, the KGI Securities analyst added that "slow shipment volume of 4.7" iPhones in 1Q17 and the lack of a new iPhone SE in 2Q17" will also be a factor in the declining Apple iPhone sales.

"We estimate 1Q17 iPhone shipment volume of 40-50mn units, lower than the 51.2mn units in 1Q16," KGI Securities analyst Kuo said. There were also reports, according to Kuo, that Apple has been pushing its iPhone component makers and suppliers to cut down on its prices. The KGI Securities analyst further added that the projected total iPhone shipment volume "will reach 35-40mn units and fall YoY in 2Q17." This is definitely way lower than the 40.4mn units during the second quarter of 2016.

The declining Apple iPhone sales seem to be just the tip of the iceberg. "We believe iPhone component makers have been facing significant pressure from Apple (US) to cut prices," KGI Securities analyst Kuo revealed. According to his reports, the price reductions may start as soon as November or December this year and will likely drag down bottomlines within the supply chain.