Apple seen building 75M iPhone 7 units by end of 2016, focusing on 7 Plus

Posted:
in iPhone
Apple is likely building more iPhone 7 units than expected in the second half of 2016, particularly 7 Plus models, according to a new analyst memo seen by AppleInsider.




The company is liable to churn out closer to 75 million units by the end of the year instead of a previous estimate of 70 million, J.P. Morgan's Asia Pacific research team wrote, citing supply chain checks. The revision is based on a trio of broader factors as well, including "aggressive" U.S. carrier promotions, Apple launching in 28 countries (up from 12 for the iPhone 6s), and chief competitor Samsung botching the launch of the Note 7. Because of numerous battery fire incidents, Samsung was forced to recall the initial batch of phones.

It's not certain however whether Apple is seeing more iPhone 7 demand, or simply compensating for rapid global expansion and low inventory. J.P. Morgan analysts noted that even their revised numbers are low compared to the second half of 2015, when Apple built some 85 to 90 million iPhone 6s units.

Though there isn't much data yet, reports have suggested that the 7 Plus is proving popular despite its higher price. This is presumably because it's distinguished not just by a bigger screen but by its dual-lens camera, which enables 2x optical zoom.

iPhone 7 demand will likely stay "muted" because of a "lack of meaningful spec upgrades," J.P. Morgan concluded. Instead, Apple is predicted return to form with next year's iPhone, which may have an edge-to-edge OLED display.

Comments

  • Reply 1 of 16
    Dunno I grabbed the 7 and love it. Muted, I think not
    netmagestanhopecaliwatto_cobra
  • Reply 2 of 16
    Ordered the 7 Plus and coming from 6 Plus. Discovered today that its delivery is 1 week sooner than expected. *freu*
    albegarccaliwatto_cobra
  • Reply 3 of 16
    Truth be told, the 7 is pretty much on par with the 7 Plus. 

    Having a built in telephoto lens is great, and definitely a nice perk, but it shouldn't be enough to dictate which model someone gets. When you're not taking pictures you still have to carry it, hold it, use it, for everything else every single day. You ought to be getting the size you want, over any other consideration.

    That said I bought a 7 Plus too.
    80s_Apple_Guywatto_cobra
  • Reply 4 of 16
    "Muted"

    -  A10
    -  Significantly improved screen
    -  Water resistant and dust proof 
    -  New haptics 
    -  Improved camera.  For Plus, dramatic
    -  Improved FaceTime camera
    -  Improved design (antenna lines, new colors)
    -  Double storage 
    -  3GB RAM (Plus)
    -  Stereo speakers with dramatic volume increase 
    -  Faster LTE
    -  iOS 10 with long list of improvements 

    Give me a f*** break.  This is huge improvement for the iPhone 6 and older target market. 
    schlackmultimedianetmageTurboPGTcalipscooter63jbishop103980s_Apple_Guywatto_cobra
  • Reply 5 of 16
    yes, those lack of meaningful spec upgrades.... x2 CPU speed over 6 x3 GPU speed over 6 x2 speakers over 6 x3 cellular data speed over 6 x2 ram over 6 x2 storage over 6 If Intel released a machine with these improvements over a 2 yr old machine, for the same price, the press would be going absolutely mad and the stock would be through the roof.
    netmagealbegarcTurboPGTcalipscooter63jbishop1039watto_cobra
  • Reply 6 of 16
    It is because morons run Wall Street and don't understand the cultural sea change the iPhone represents and it's addictive qualities.
    stanhopecaliwatto_cobra
  • Reply 7 of 16
    512ke512ke Posts: 781member
    Analysts seem like they are all over the place while trying to predict the success, or failure, of the new iPhones. 

    Here is an idea. AI should keep a running scorecard of analysts' predictions and accuracy. 

    Maybe be each analyst gets a score. Like, this flaky one is a 2.6. That accurate one is a 7.4... 

    It would be fun and revealing to judge them over time.

    just a thought. Probably it's too much work to maintain such an index. Or maybe it exists already?

    watto_cobra
  • Reply 8 of 16
    gatorguygatorguy Posts: 19,805member
    512ke said:
    Analysts seem like they are all over the place while trying to predict the success, or failure, of the new iPhones. 

    Here is an idea. AI should keep a running scorecard of analysts' predictions and accuracy. 

    Maybe be each analyst gets a score. Like, this flaky one is a 2.6. That accurate one is a 7.4... 

    It would be fun and revealing to judge them over time.

    just a thought. Probably it's too much work to maintain such an index. Or maybe it exists already?

    There wouldn't be any reliable way to determine the accuracy unless Apple's changes policy and report specific model sales. They won't. No one really knows how many iPhone 7's or Plus'es they sell outside of Apple themselves. Fun to guess tho.
    watto_cobra
  • Reply 9 of 16
    I skipped this one because still suffering from the disappointing 6 to 6s upgrade and there even isn't anything in the 7 as major as 3D touch, which I ended up turning off because interferes with normal taps too much, e.g. tapping links in safari. I'm sure there will be plenty still on the 6 and below to more than cover any deficit though.
  • Reply 10 of 16
    lkrupplkrupp Posts: 6,608member
    Boring. Underwhelming.

    But selling like hotcakes! B)
    edited September 2016 watto_cobra
  • Reply 11 of 16
    512ke said:
    Analysts seem like they are all over the place while trying to predict the success, or failure, of the new iPhones. 

    Here is an idea. AI should keep a running scorecard of analysts' predictions and accuracy. 

    Maybe be each analyst gets a score. Like, this flaky one is a 2.6. That accurate one is a 7.4... 

    It would be fun and revealing to judge them over time.

    just a thought. Probably it's too much work to maintain such an index. Or maybe it exists already?

    These are likely people of the same mindset as the faux journalists who kept predicting Trump's doom from the onset.  They keep applying old precepts to a completely new circumstance.  I'd call that stupid of the highest order yet they continue....yes Tamron, Savannah, Don, Joe, et al....
  • Reply 12 of 16
    Margins will be higher too, so cue some serious action on the stock in the next quarter...
    cali
  • Reply 13 of 16
    Just the other day there were a couple of articles saying Apple would sell 100 million iPhone 7 models by year's end. Today we have a 25 million less units iPhone 7 disappointment. I was wondering why Apple's share price was down today and now I know why.
  • Reply 14 of 16
    Ordered the 7 Plus and coming from 6 Plus. Discovered today that its delivery is 1 week sooner than expected. *freu*
    Did you order from Apple or a carrier? I must have bad luck. Every time I look at my order status on Verzion, the ship date was pushed back a week. I've gone from 9/28 to 10/12 now. I should have ordered from Apple. I ordered a JB 7 Plus. 
  • Reply 15 of 16
    gatorguygatorguy Posts: 19,805member
    Just the other day there were a couple of articles saying Apple would sell 100 million iPhone 7 models by year's end. Today we have a 25 million less units iPhone 7 disappointment. I was wondering why Apple's share price was down today and now I know why.
    I doubt that has a thing to do with it. It's not as tho this is the only analyst report floating about and how many investors would rely on this one even if they read analyst reports at all. 
  • Reply 16 of 16
    I skipped this one because still suffering from the disappointing 6 to 6s upgrade and there even isn't anything in the 7 as major as 3D touch, which I ended up turning off because interferes with normal taps too much, e.g. tapping links in safari. I'm sure there will be plenty still on the 6 and below to more than cover any deficit though.
    Since you have a 6S, you'll be fine sitting this out - the vast majority of iPhone owners don't upgrade every single year.
    indiekiduk
Sign In or Register to comment.