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iPhone 7 will be a flop, says Apple analyst

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Apple prides itself on producing well-built, covetable smartphones, but one analyst believes that the iPhone 7 might not be too impressive.

Ming-Chi Kuo, a respected analyst at KGI Securities, believes the iPhone 7 won’t have “many attractive selling points”.

The long-time Apple commentator made the damning remarks in a new research note that describes how Apple’s 2016 phone shipments could fall below 2014 levels.

“Given the fact that shipments fell YoY for the first time in 1Q16, we don’t think large-screen replacement demand will contribute much to growth,” Kuo explained.

He continued: “To sustain growth, the iPhone needs to come up with more innovative features to revitalise the user experience, for example in form factor design, software and hardware specs.”

The analyst added: “We don’t see many attractive selling points for iPhone 7 in 2H16 and are conservative on 2H16F shipments. While we revise up 2016F iPhone SE shipments from 12 million to 18 million units, this won’t offset overall iPhone shipments decline.”

According to Kuo, Apple will be the only top-five smartphone brand to see a decline in shipments year-on-year.

Related: iPhone 8

However, Kuo recently predicted that next year’s iPhone – the rumoured iPhone 8 – will feature a significant design refresh, possibly debuting an all-glass body.

It’s also expected that Apple will introduce AMOLED displays, with the possibility of a new 5.8-inch model.

iPhone SE Review:

Are you an iPhone user? Tell us why – or why not – in the comments below.

Darkedge

April 25, 2016, 11:29 am

all glass body? Thats a good idea why?? It's more fragile, more prone to scratches and heavier than metal.
Loon

Jbw87

April 25, 2016, 2:07 pm

Hopefully the design language for the new iPhone will not permit some of the atrocities we saw on the current generation of phones. Those cheap, and ugly plastic bars that span the back, top and bottom backside of the phone. Prone to scratching and staining, what were they thinking??? The camera lense, protruding as if they thought of the camera only after they made the phone, somehow having forgot it all together, and ultimately slapped one on before shipping... Pathetic

mode11

April 25, 2016, 5:39 pm

I don't think he's been paying attention. Apple have created a new body design every other generation, going all the way back to the second model (the 3G). It's therefore extremely unlikely that after the 6/6S, the 7 will be much the same, with a radical new design the following year. Which if history is any guide, would be the 7S in any case, not the 8. Good grief.

mode11

April 25, 2016, 6:02 pm

None of which is a problem if you put it in an (Apple) case, like any sensible person would do anyway. I agree it would be better if the back were featureless and the camera flush, though you're being hyperbolic about minor flaws.

I can't see many Apple customers leaving for Android, ultimately. iOS has the best software support, including from Apple, who stand by their products for years with software updates. Whereas CE manufacturers lose interest as soon as you walk out of the showroom.

Jmac

April 26, 2016, 7:47 am

Agreed. This guy may be "a respected analyst", but he doesn't really have any better idea of what Apple is going to do next than the millions of other speculators out there. In this case, my instinct is his crystal ball is cloudy.

Jmac

April 26, 2016, 7:51 am

It's all speculation, but (suitably coated) glass is actually significantly more scratch resistant than aluminium. I'd be more worried about the fact it would be a massive fingerprint magnet and slippery in the hand, but those are both non-issues when a case is used, which is what 99% of iPhone users do.

asas

April 26, 2016, 7:53 am

if this guy is right...it means that there are going to be less idiots paying for an overpriced phone than before. I dont think so.
General market decline...and consumption fatigue...yes!.....extending the maturity trap with (increasingly marginal/irrelevant) features....not really. In this stage...only shifting the paradigm will lead to more consumption. If Apple maintains its MS...then that's already a small miracle.

asas

April 26, 2016, 7:54 am

so..only fools would fall for that!
Well, they ARE fools!

Michael

April 27, 2016, 8:56 am

I'm an Apple fan over and over, but of late have been somewhat disillusioned.
I and my family have a houseful of Apple computers, screens, laptops, phones, tablets, iPods etc, etc. I automatically purchased every phone that was released until recently.
My wake up call came with the Apple watch. I immediately purchased one with a Milanese strap only to find it was an expensive toy! My main reason for the purchase was to make and receive calls on it..... It doesn't do the job, unless one is in a monastery without any noise to hinder the conversation. The call volume is so low when making and receiving calls as to render the watch useless!

I swapped it for a Samsung Galaxy S7 Edge and was astonished at how good it is and the level of customisation available is astonishing.

I have two phones including an iPhone 6 Plus and use both on a daily basis and the Samsung is not only more attractive to look at and handle, it also does everything the iPhone is capable of doing and in many cases better.

I'm in the fortunate position of needing two phones and being able to have the best from both sides and at this moment in time the Samsung is far ahead. I will of course purchase the iPhone 7 if it proves to be worthwhile, but I certainly won't be ordering one the moment it is available, preferring to wait and see what it has to offer.

I for one have noticed a significant number of iPhone users moving over to Samsung.
I will admit that the Samsung isn't as intuitive as the iPhone, but that is a small obstacle to overcome for new users.

Everlast

April 27, 2016, 8:05 pm

Actually, glass is one of the hardest materials and resists scratches very well. All metals are far easier to scratch compared to glass. Glass can be scratched by diamond, some types of rocks or sand and other glass.
Especially if we are talking about some specially designed type s of glass like gorilla glass, sapphire glass or mineral glass.

Darkedge

April 28, 2016, 8:33 am

Okay fragile isn't the correct word BRITTLE is.

Still heavier than metal doing the same job and doesn't tend to flex safely like metal.

Neil Schubert

September 8, 2016, 11:55 am

Apple made one big big mistake with the iPhone 7. No Headphone jack. What am I going to do, carry around a pair of wireless ear buds? Now I have batteries in the headphones and the phone itself. This is one of the dumbest moves apple has made, and I'd pull stock out of the company and put it in LG, HTC, Samsung or many of the others.

Kougetsu Barakage

September 21, 2016, 12:04 am

Iphone watch is like No Man's Sky and the Iphone is like the next COD rehash. People get caught up in the hype of the past, so it doesn't matter how much they're spending for upgrades that aren't worthwhile. I'd wish apple would just die. Their products aren't really king anymore and the proprietary model is stupid...but yet people still throw their money at them.

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