Apple Inc. (NASDAQ:AAPL) is set to announce the falling sales of their marquee product, the iPhone, this Tuesday. This would be the third successive quarter when the business announces decline sales.
Wall Street analysts are saying that Apple is likely to announce a sales figure of 211 million. This is a decline of 9 percent. The iPhone sales are projected to be around 45 million units. However, the same analysts are hopeful that the sales figures will pick up considerably in the run-up to the Christmas and the holiday season.
The average selling price of their latest iPhone 7 is expected to be greater, though.
The Market Expected a Drop
Wall Street and investors have been expecting a drop for a while now. But it’s still a huge turnaround story, particularly after the business had a blockbuster 2015, where Apple was able to sell 231 million iPhones because there was a huge demand for the iPhone 6.
The sales for the year grew by a staggering 37 percent. But it was clear by the end of the year that the iPhone 6S would not be able to sustain this level of growth. Earlier, the business had overestimated the demand for the iPhone 6.
Wall Street was still optimistic, for a while at least, that the next product would be able to surpass these figures. The early indicators were positive too. Initial demands were four times higher than the iPhone 6. Mobile operators both in Europe and the United States, and component suppliers too, had said they were confident of the iPhone 7.
Apple Unable to Gain From Samsung’s Misfortune
Some analysts had also said that the misfortune of Samsung Note 7 that the company stopped producing will work to the advantage of Apple. They seemed confident that many of Samsung’s customers will now shift to Apple. Because of this optimism, the market began to expect a better result. Deutsche Bank, for instance, raised their estimates for iPhone sales. But now it seems that is clearly not the case.
There was, however, those who have been pointing out all along that Apple (NASDAQ:AAPL) suffer from supply constraints, especially for the “Jet Black” models. They were confident that Apple will have limited growth.
After the earnings release, Apple will be launching new Macs. That will be on Thursday. Reporters have been invited already to their Cupertino headquarters.