It has been a couple of years since Apple introduced its iPhone 6, its most successful iPhone release ever. Fast forwarding to 2016 and the tech giant never really quite managed to replicate that level of success. What is worse is that sales seem to be getting slower every quarter. Sure, the iPhone 6 was a record setting release for the company and it would really be hard to top that, but in recent quarters, it has been getting more difficult for Apple to generate some smartphone sales growth.
According to the latest information published by market research firm Consumer Intelligence Research Partners (CIRP), owners of iPhone devices in the United States mobile market are holding on to their smartphones way longer today than in previous years. In gathering its data, CIRP looked into mobile users who have upgraded from an old iPhone device to a new model, and the firm found that the age of the old iPhones has risen in the last few years. In other words, iPhone owners are actually waiting longer before deciding to go purchase a new iPhone.
As quoted by Taiwan’s Economic Daily Times, Barron’s Asia has reported that Apple has requested its suppliers to produce between 72 million to 78 million units of new iPhone devices before the end of this year, perhaps in anticipation of healthy sales for the upcoming iPhone 7, which is expected to unveiled later this year.
Back in January early this year, Apple had projected that total company earnings will possibly take a dip by the first quarter of 2016, which meant that April of this year, the tech giant will likely register a slump in sales for its iPhone devices, the first ever in the history of its highly popular smartphone lineup.
Everybody knows that Apple gets most of its revenues from sales of its iPhone devices. As a matter of fact, iPhones make up two thirds of the tech giant’s total earnings. Accordingly, the profits the company posts every quarter is directly and significantly affected by how many iPhone units it has managed to ship around the world. Sure, Apple has started to diversify its products and services in the last few years -- introducing a wearable device (the Apple Watch, its first and only smartwatch to date), expanding its lineup of tablet devices, and even offering a music streaming subscription service (Apple Music). But the iPhone remains the company’s most reliable cash cow.
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