Weak iPhone 7 Demand Predictions Continue With 'Conservative' Chip Orders

[MacRumors]

Apple "is being more conservative" when placing its orders with chip assembler Advanced Semiconductor Engineering, once again suggesting that the 2016 "iPhone 7" will face a weaker demand in comparison to normal cycles, due to a dearth of hardware innovation in the handset (via Nikkei). Apple wasn't specifically mentioned during ASE's recent shareholder meeting, but a reference to "the big client in the U.S." overtly ties in with Apple, which contributed 31.2 percent of ASE's $8.73 billion revenue in 2015.

"The big client in the U.S. is a little more conservative when placing orders this year," said Tien Wu, ASE's chief operating officer, ahead of the company's annual shareholder meeting.

"In the smartphone market, meanwhile, other players besides Apple are more aggressive regarding booking chips this year," Wu said. But, he added, "I don't think anybody is overly aggressive this year, so I don't think there would be any serious inventory correction issue similar to last year."

The doom and gloom forecast for iPhone sales this year have reached a high point in the middle of 2016, with recent reports suggesting the iPhone 7 is unlikely to reverse recent year-over-year declines in sales for the company. Most rumors cite the same reasons: consumer apathy due to a lack of innovation in comparison to last year's iPhone 6s and iPhone 6s Plus.

The biggest hardware revisions of the iPhone 7 are predicted to center around the removal of the 3.5mm headphone jack, the addition of a new dual-lens camera (possibly only on the 5.5-inch model), and restructured antenna bands. Otherwise, the devices are expected to look similar to the iPhone 6s form factor, with a mega-cycle upgrade hitting in 2017 in time for the line's ten-year anniversary.

Article Link: Weak iPhone 7 Demand Predictions Continue With 'Conservative' Chip Orders

 

[msi92]

Apple take notice! this is a sign.

People want something new!

 

[MH01]

For a company that resolves around one product line, for the majority of its profits , for them to expect poor sales ( conservative orders)....not buying it. Apple cannot afford to have a dud year with the iPhone .

 

[thisisnotmyname]

Apple take notice! this is a sign.

People want something new!

Just anything or are there specific missing features that make you not want the next handset?

 

[JonneyGee]

I've said this elsewhere before: changes to contract structures will influence sales numbers in the US more than anything else. Now that phone prices aren't subsidized here anymore, people will wait longer to upgrade. This will not only affect Apple but also all Android manufacturers. Apple is smart to shift to a 3-year cycle as that likely reflects the new reality for most of the customers here.

Overseas, their sales gain each year has mostly been from reaching new countries. There's a glass ceiling there as well as upgrades will be even less frequent in many other countries.

None of this means "peak Apple" has passed – it only means that the market has matured and every company has to shift the way they do things. Apple will be just fine.

 

[QCassidy352]

Unless they have successfully kept something from the rumor mill, this is shaping up to be the smallest upgrade they've ever done, one year after what is arguably the previous smallest upgrade they've ever done. Not good.

 

[sniffies]

When you guys say "iPhone 7", do you mean both iPhone 7 and iPhone 7 Pro? Or just iPhone 7? Because iPhone 7 Pro will likely be in very high demand.

 

[macs4nw]

Everybody's waiting for that radically-redesigned, all-glass, wrap-around, OLED, iPhone8...... magical really.....

 

[Marzzz]

Well, I'll probably upgrade because I want the bigger phone; but I can see getting the new one a year later....

 

[Keirasplace]

3 months ago those "analysts" were saying the opposite... Oh my they are useless.

 

[dannyyankou]

So what are we calling it? iPhone 6SE or iPhone 6S Pro?

 

[gsmornot]

I upgrade each year (just because) but honestly I could keep the phone I have for another year. I have no specific complaints or wishes for a future device.

 

[MH01]

I've said this elsewhere before: changes to contract structures will influence sales numbers in the US more than anything else. Now that phone prices aren't subsidized here anymore, people will wait longer to upgrade. This will not only affect Apple but also all Android manufacturers. Apple is smart to shift to a 3-year cycle as that likely reflects the new reality for most of the customers here.

Overseas, their sales gain each year has mostly been from reaching new countries. There's a glass ceiling there as well as upgrades will be even less frequent in many other countries.

None of this means "peak Apple" has passed – it only means that the market has matured and every company has to shift the way they do things. Apple will be just fine.

Can I ask what the changes were to subsidised contract structures ? In Europe we get 24 months plans, and you generally get the handset for very little depending on how much you want to spend on the plan.
[doublepost=1467130089][/doublepost]

So what are we calling it? iPhone 6SE or iPhone 6S Pro?

I'm going with "pro" they can charge extra for that

 

[AppleFan91]

Man, if the Note 7 is what the leaks are showing and Apple comes out with a phone that has a better camera and removes the headphone jack, they'll see a lot of switching. I love iOS, but the hardware is lagging behind so much now it's getting bad. I mean where's the wireless charging, where's the fast charging, the OLED display,waterproofing, etc. they say it isn't ready and Apple is doing it next year, why? Competitors did it 2 years ago. Is it to protect the margins? Cuz those will shrink for other reasons soon enough.

 

[Loge]

The Plus may have some significant new features (dual lens, 256GB option maybe) but no real reason why people will buy the 4.7. Particularly if a major redesign coming in 2017 people will just wait.

Anyone guess what proportion buy the Plus? Based on what I see in the wild I'd say about 20%.

 

[avanpelt]

The only thing I want is waterproof so that I can take pictures and videos of my kid in the pool without needing to put a silly waterproof case on the phone. If the iPhone 7 is waterproof, I'll almost certainly buy it and sell my iPhone 6.

Aside from that, the iPhone 6 does everything I need from a smartphone at the moment. I've thought about upgrading to a 6s a few times, but 3D Touch just doesn't seem to be enough of a benefit for me to justify the upgrade, personally. I'm glad to see more developers embracing 3D Touch, though.

 

[Soccertess]

wow, iphone 6SE/iphone 7 sounds amazing. So amazing suppliers are expecting an increase in sales for competing devices.

Tim really really knows how to lead apple. Next up, new bands for the Apple watch!

 

[Costino1]

I'm on my iPhone 6+ which is experiencing battery drain and feeling old.

I'm simply excited for a new phone. Not really excited for the iPhone 7. It'll feel like a new iPhone 6+ to me.

 

[Cougarcat]

Just anything or are there specific missing features that make you not want the next handset?

I think everyone wants what is rumored for next year: smaller bezels and touchID in the screen. Coming from a 6 Plus, I'd like 3D Touch and more RAM, but if it's the same case with faster internals and a better camera, I can wait a year for the big one, especially if they remove the headphone jack.

 

[CmdrLaForge]

Lack of demand even with this fantastic innovation of tossing the headphone jack? Unbelievable !! Cannot innovate my a.....

 

[navaira]

My bet is 6SS+, 6SS++ and 6SS+++.

 

[ITGuyami]

Believe it when I see it. MR has been so incredibly wrong on predictions lately.

 

[PatriotInvasion]

I mean, the product is mature and there's only so many ways to redesign a piece of glass on top of a metal backing. I'd expect longer design life cycles going forward more in line with Macs and iPads. 3-4 years instead of every 2.

 

[ITGuyami]

Cell phone designers have hit a wall. Even Samsung has become desperate in their newest release by just putting a bunch of trivial junk features in it.

 

[Stuey3D]

Normally I would wait for this years iPhone before I upgrade but o2 offered to pay off the last 4 months of my contract and upgrade early so I got an iPhone 6S+ as my old 6 was knackered and the rumours of this years iPhone seem really disappointing.

The more I see about this years iPhone the more I am happy with my choice, maybe I'm getting old or maybe tech improvements have slowed down lately but my desire to have the latest and greatest iPhone has all but gone.

However next years iPhone rumours seem pretty awesome so maybe that will change my attitude a bit.