{"id":14668,"date":"2016-11-10T05:51:00","date_gmt":"2016-11-10T05:51:00","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=14668"},"modified":"2016-11-10T05:51:00","modified_gmt":"2016-11-10T05:51:00","slug":"apple-leak-reveals-massive-new-iphone-cancellation","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/technology\/apple-leak-reveals-massive-new-iphone-cancellation.html","title":{"rendered":"Apple Leak Reveals Massive New iPhone Cancellation"},"content":{"rendered":"

Apple Leak Reveals Massive New iPhone Cancellation<\/span><\/strong><\/h2>\n

Apple Leak Reveals Massive New iPhone Cancellation:-<\/strong> Ming-Chi Kuo is at it again. The KGI Securities analyst (widely regarded as \u201cthe best Apple AAPL -0.11% analyst on the planet\u201d) has revealed Apple has decided cancel the annual upgrade of arguably its most successful iPhone in 2016\u2026<\/span><\/p>\n

In a new research note obtained by MacRumors, Kuo says Apple has decided not to release a 2017 update of the iPhone SE. The company\u2019s budget-friendly 4-inch handset has been a surprise critical and commercial hit and I recently argued it is a better buy than the iPhone 7.<\/span><\/p>\n

So why would Apple consider such a self-inflicted wound? According to Kuo the reasoning is twofold:<\/span><\/p>\n

To increase margins on the 2016 iPhone SE as its older components reduce in price\u00a0<\/span>To reduce risk of cannibalisation that a 2017 iPhone SE could have on sales of the more profitable iPhone 7\u00a0<\/span>It is well known that Apple is far more interested in profit share than market share, so on a business level both these reasons make financial sense. Given concerns over iPhone 7 sales, it also wouldn\u2019t be great PR if future financial reports forced Apple to admit the iPhone 7 was impacted because customers preferred the company\u2019s budget model.<\/span><\/p>\n

The flipside is Kuo says the decision to ditch a new iPhone SE will impact raw sales figures.<\/span><\/p>\n

Notably he forecasts iPhone shipments will drop at least 10% in the second quarter of 2017 with sales at circa 35M compared to 40.4M in the second quarter of 2016. Kuo notes that the 2016 second quarter was saved due to \u201cupbeat demand for the iPhone SE.\u201d<\/span><\/p>\n

The company has previously skipped iPad generations and many years of MacBook Pro upgrades when it has deemed existing models still get the job done. But it would be a first to see Apple<\/span>\u00a0passover an iPhone, even if it ties in with the company\u2019s recent claim that customers are increasingly moving to a <\/span>three year upgrade model.<\/span><\/p>\n

Personally I\u2019d argue the move is a mistake \u2013 even if only to tweak the iPhone SE range to include functionality like 3D Touch (to encourage developer support) and the hardier fixed home button introduced with the iPhone 7 and iPhone 7 Plus.<\/span><\/p>\n

More devilishly, it could also remove the headphone jack to a) make room for the haptic motors of these features and remove one potential advantage the iPhone SE has for some customers over the new flagship iPhones. Plus, quite frankly, it\u2019s more interesting to see Apple continue to redefine the midrange sector than have a year off.<\/span><\/p>\n

Kuo rarely gets things wrong, particularly with iPhones. Notably in the last 18 months he has nailed every major iPhone 7 feature, every major iPhone 6S feature and the introduction of the original iPhone SE \u2013 including its lower pricing). But let\u2019s hope, just once, he has got this one wrong\u2026<\/span><\/p>\n

Source:-\u00a0http:\/\/www.forbes.com\/sites\/gordonkelly\/2016\/11\/09\/apple-iphone-2017-cancellation\/#71619efc4fdd<\/span><\/p>\n

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