Apple Leak Reveals large New iPhone Cancellation

Ming-Chi Kuo is at it once more. The KGI financial analyst (widely considered “the best Apple AAPL +0.09% analyst on the planet”) has unconcealed Apple has determined cancel the annual upgrade of arguably its most thriving iPhone in 2016.

Apple Leak Reveals large New iPhone Cancellation

In a new analysis note obtained by MacRumors, Kuo says Apple has determined to not unleash a 2017 update of the iPhone SE. The company’s budget friendly 4-inch phone has been a surprise vital and industrial hit and that i recently argued it's a stronger obtain than the iPhone seven.

So why would Apple think about such a self inflicted wound? in keeping with Kuo the reasoning is twofold:

1.To increase margins on the 2016 iPhone SE as its older elements scale back in worth

2.To reduce risk of cannibalisation that a 2017 iPhone SE may wear sales of the a lot of profitable iPhone seven

It is acknowledge that Apple is much a lot of fascinated by profit share than market share, thus on a business level each these reasons build money sense. Given considerations over iPhone seven sales, it conjointly wouldn’t be nice PR if future money reports forced Apple to admit the iPhone seven was compact as a result of customers most well-liked the company’s budget model.

The flipside is Kuo says the choice to ditch a replacement iPhone SE can impact raw sales figures.

Notably he forecasts iPhone shipments can drop a minimum of 100 percent within the second quarter of 2017 with sales at circa 35M compared to forty.4M within the second quarter of 2016. Kuo notes that the 2016 second quarter was saved thanks to “upbeat demand for the iPhone SE.”

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