Customers hold the iPhone 6s during the official launch at the Apple store in central Sydney, Australia

Apple iPhone sales projected to be stagnant for Q1 2016

Analysts predict slowest-ever iPhone sales growth of just 1% in the first three months of its financial year, down from 46% same quarter in 2015 Apple is expected to report its slowest-ever i-Phone sales growth on Tuesday, when it announces its earnings for the first quarter of its 2015/16 financial year.

Analyst estimates suggest that year-on-year growth in iPhone sales will come in at just over 1%. That’s a far cry from this time in 2015, when the iPhone grew 46% year-on-year.Although the iPhones 6S boasted record weekend sales when they launched in September, their record-breaking streak hasn’t lasted, and they now look likely to sell in similar numbers as their popular predecessors – which would be a still-astronomical 74.5m units.

The reason for the slowdown in growth is unclear. Some analysts attribute the stagnant demand to the fact that the newest iPhones have fewer distinguishing features than their popular predecessors, causing some proportion of buyers to skip a generation in the hope of a more substantial upgrade with the iPhone 7, expected to arrive in September 2016.Others point to the general slowdown in smartphone sales worldwide.

Gartner figures from August show that worldwide smartphone in the second quarter of 2015 hit 329m, up from 290m the same quarter in 2014. That increase of 13.5% year on year was the slowest growth rate since 2013.

The iPhones 6 also received a particular boost from being the company’s first over-sized phones, tempting some switchers from Android, particularly in Asia, who had previously lapped up phablets from players such as Samsung Electronics.“Apple has become a victim of its own success as the blockbuster iPhone 6 product cycle was hard to replicate with many customers either buying an older, cheaper iPhone 6 or waiting for the iPhone 7,” FBR Capital Markets analyst Daniel Ives said.

China, the company’s fastest-growing market, may also have weighed on first-quarter results, as a slowdown in the country’s economy forced consumers to tighten their purse strings.To make matters worse, Apple is expected to forecast a drop in iPhone sales for the second quarter of its 2015/16 financial year – the first time that sales will fall since the iPhone was launched in 2007.This was foreshadowed by disappointing second-quarter forecasts from the company’s Asian suppliers such as TSMC and Largan Precision Co.


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