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Decline in Apple’s iPhone sales could be more than expected this year

For the first time ever in the history of Apple’s iPhone, they expect to report a year-on-year decline in the sales. Tim Cook, said that, “We do think iPhone units will decline in the quarter”. He added that “We don’t think that they will decline to the levels you’ll talk about”. The iPhone sales showed some growth during the holiday quarter, which was quite remarkable in comparison to other quarter record. The records showed that Apple has sold a record breaking 74.5 million units during the year 2014.

However, the Cupertino’s giant has surpassed this total sales record in 2015 by selling around 74.8 million iPhones. But as per reports until the tech giant has a spectacular three month period from January till March this year we can’t be sure of its success. And if it’s not so we could see a decline in the sales of the company year-over-year.
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Recently, Andy Hargreaves, analyst of Pacific Crest Securities, cut his estimate on the earnings of the manufacturer for the quarter. The analyst expects that the total iPhone sales from January till March will be at the low end of Apple’s range. However, this year-on-year decline in the iPhone sales could be for a short period.

We can expect to see some contribution from the upcoming 4 inch iPhone 5se smartphone to increase the revenue of the company in the next quarter. The new design of the next generation iPhone 7 and iPhone 7 Plus handsets might lead to stronger sales year-on-year. There is a good chance that current quarter is an outline when we talk about the sales of the iPhone year-on-year.

Apple on the other hand has a large number of potential buyers which can make a difference in the given quarter. The iPhone owners sporting an iPhone at the time Apple’s iPhone 6 was released, have not yet updated to a device with larger screen. And these will be the users who will be more inclined towards purchasing the iPhone 5se handset.

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