The initial sales figures have been estimated and yet no one is completely sure whether or not iPhone 7 was really a hit as it seems to be so far.
The estimations are based on the preliminary iPhone 7 and iPhone 7 Plus sales. However, they vary in different analysis reports. Chances are it is just a bridge to next year’s 10th anniversary iPhone version. The figure keeps fluctuating continuously. Hence the overall performance of the product in the market is still a big question.
The global sales reached up to 13 million units in the first week of release on September 16th. Moreover, Apple is shipping the models to 28 countries this year. The statistics contrasted strongly with that of last year’s. Angelo Zino predicted low single-digit declines in year-over-year iPhone sales for the September and December quarters.
The market research firm in Germany, GfK, estimated the sales to have dropped down mainly in Europe. This resulted in sudden backing off of a high number of Apple investors. on Friday, shares were dumped in heavy volume. Apple shares (AAPL), had climbed 6% since the company’s Sept. 7 launch event. However, after this incident lost 1.7% to $112.71 and dragged on the Dow Jones Industrial Average.
The new features of iPhone 7 have earned great admiration as well as resent. Public reaction has mostly been negative. Erick Sanchez, 30, a communications consultant in Washington, D.C said: “I love Apple, but I can’t believe I’m at a point where I’m charging a phone, a watch, and a set of headphones while other companies are mastering wireless charging.”
Nonetheless, sales have increased considerably through brand loyalty and support. “I was hesitant about the new operating system, but I’m happy with it,” says Rachel Sobel, a 39-year-old writer in Boca Raton.
A thumb-nail sketch of iPhone 7 launch customers reveals almost all of them (98%) already owned an iPhone. Comparatively, the figure was 88% for the launch of iPhone 6S.
BMO’s Long went back through the history of all iPhone sales and calculated that on average, 17% of users upgrade as soon as the next year’s model comes out; 58% upgrade a year after that. 22% the year after that. Only 2% of users hang on longer.
Why did it happen? analysts became too pre-occupied with fancy new features and completely ignored two important factors: a) the iPhone 7 offers tremendous performance improvements and b) the pool of existing iPhone users in the market for an upgrade was vastly underestimated. Apple told component suppliers to get ready for an iPhone production target in the 72 to 78 million range, making it the “highest production target in about two years.”
According to Tim Long’s estimates, 120 million iPhone users as of June 2016 were using iPhone 5s devices or even older models. One of them got it a bit right. 65 percent of iPhone 6s users said they would not update their device this fall. Improvements did not please them much.
However, as mentioned before, Apple refused to reveal the exact sales figures. We will likely have to wait until the company’s earnings report in October. Before we get a firmer read on the iPhone 7’s popularity.