Apple reportedly boosts 'iPhone 7' parts orders ahead of launch
Apple recently increased parts orders for the "iPhone 7" -- expected to be announced on Wednesday -- in what may be a sign that it doesn't think iPhone sales will decline as harshly year-over-year as originally forecast, a report claimed on Monday.
Orders from suppliers were raised 10 percent, Taiwanese supply chain sources told DigiTimes. Apple allegedly predicted that iPhone shipments in the second half of 2016 would only be 60 percent of those a year ago, which averaged roughly 30 million units per month.
Even with a temporary improvement, parts orders are likely to diminish over the December quarter. While Apple needs a large quantity of components to meet launch and holiday demand for iPhones, sales inevitably shrink in the beginning of the following year, even if a product is a runaway success.
The "iPhone 7" is mostly expected to be an interim update, with features like a faster processor, better camera technology, better waterproofing, a pressure-sensitive home button with haptic feedback, and more storage space -- 32 gigabytes on the bottom end, 256 gigabytes at the top. The "7 Plus" should have a dual-lens camera, and may or may not have a Smart Connector on the back.
These relatively modest upgrades could be one reason Apple would anticipate softer iPhone sales. The company is thought to be placing a bigger bet on 2017 iPhone models, which may have features like edge-to-edge OLED screens and iris scanning.
Orders from suppliers were raised 10 percent, Taiwanese supply chain sources told DigiTimes. Apple allegedly predicted that iPhone shipments in the second half of 2016 would only be 60 percent of those a year ago, which averaged roughly 30 million units per month.
Even with a temporary improvement, parts orders are likely to diminish over the December quarter. While Apple needs a large quantity of components to meet launch and holiday demand for iPhones, sales inevitably shrink in the beginning of the following year, even if a product is a runaway success.
The "iPhone 7" is mostly expected to be an interim update, with features like a faster processor, better camera technology, better waterproofing, a pressure-sensitive home button with haptic feedback, and more storage space -- 32 gigabytes on the bottom end, 256 gigabytes at the top. The "7 Plus" should have a dual-lens camera, and may or may not have a Smart Connector on the back.
These relatively modest upgrades could be one reason Apple would anticipate softer iPhone sales. The company is thought to be placing a bigger bet on 2017 iPhone models, which may have features like edge-to-edge OLED screens and iris scanning.
Comments
I would call that a solid upgrade. The whole phone will be significantly improved. Just the design will be iterative
The iPhone 7 will be the best phone ever. People who complain about the package just don't get it. It's about what the phone can DO, not what it looks like.
Piano Black for me, please.
I'll apologize in advance for cutting in front of the rest of you in the pre-order line...
I really expect better critical thinking from an apple site. You're supposed to be experts and specialists in Apple, yet here you are writing garbage memes like a cnet.
In this situation there are so many fronts that make the 3.5mm removal both a non-issue and not isolated to Apple. From Lightning headphones already existing, to BT headphones making up 15% of unit sales and 50% of the revenue, to a Smart Connector and adapter easing the "but I won't be able to charge and listen to music" woes, to Intel throwing its supporting behind USB-C for digital audio in handheld devices.
It's a great idea that brings a lot of personality to the product (see Porsche 911). I always prefer a refined product to a radical designed one.
Of course, those that associate new shapes with new phones are also the same audience that associates more cores and higher numbers to better. There's no problem in losing those users.
2) How is the camera greatly improved? Perhaps on the Plus, but the Plus is a minority of new sales. And we just went from 8MP to 12MP, with a two year "shot on an iPhone" campaign. Unless most customers are complaining about their cameras, I'm hard pressed to see that as a significant consideration for most.
3) waterproof certainly gets my attention, but the reality may be that most people protect their phones from liquid damage. I personally have never lost an iPhone in this way. So I guess the extent that this is a reason to upgrade will depend on the extent of the problem.
4) People have been debating on this forum for years about what constituted enough storage. Most recently many were insisting 16GB was plenty. So the base models get a bump, but if most people are getting by with 16GB , or already have 32GB or greater where's the incentive? 256GB is rumored only on the Plus model, so again how compelling is that going to be for the majority?
5) TrueTone display isn't really vital in the iPhone. It's very important in the iPad which is used for reading books. I just don't see this being a compelling reason at all in the iPhone.
6) Refined design is subjective. I think it looks worse. Regardless, if someone wants a glossy black phone, then it will be worth every penny. Seriously -- I paid the Black MacBook premium.
So it absolutely is a solid upgrade. But what sells upgrades are features the customer can identify with. Touch ID, Larger Screen, 12MP camera. Those are tangible reasons that are going to stand out during marketing. Right now, the only feature that stands out to me is the dual camera on the Plus. While I'm interested in it as a reason to upgrade, I'm also not going to upgrade from my SE to a 5.5" phone.
So lots of variables. Add to that, they are removing the headphone jack. We'll find out soon enough, but I fully expect Apple to lose some sales over the headphone jack, at least initially until the reviews start to come in about how great Apple's wireless and Lightning audio solutions are. And given that at the time the SE was introduced there were over 60% of Apple's installed customer base using a 4" or smaller phone, I'd say there's not enough compelling features for the average customer to really get excited about upgrading, especially considering the loss of the headphone jack. And I suspect Apple is prepared for this -- unless they introduce something that comes as a complete surprise to all of us -- but when's the last time that happened?
When you publish this, you are lying to people.
But due to some vague resemblance to 6 series, nothing else matters. I honestly expect better from this site.