The Success of iPhone 7: Apple’s Next Failure

What will be responsible for the proposed iPhone 7 smartphone to be referred to as a failure for Apple?

Judging from the high expectations placed on the sales target and the market share of iPhone 7, the phone will be a great failure if it does not perform beyond the success recorded for the iPhone 6S series. This sort of performance will be indication that the iOS platform is declining and also falling from grace.

According to Katy Huberty (Morgan Stanley’s chief financial analyst), iPhone sales is predicted to be about 218 million units next year. This is about 6 percent less when compared to about 231.22 million units of sales recorded this year (2015). Increased competition will make it harder for Apple to keep increasing its sales. This competition may be attributed to oversaturated markets in the west and increase in the use of mid-range phones especially those powered by Android.

We can’t expect the sales of iPhone to keep rising. In the nearest future, there will be persistent drop in sales. This will lead to negative coverage and decline in price of shares. Once these happen, then Apple will be portrayed as a failure.

But will this start with iPhone 7? Well, there are indications that the taste for iPhone is gradually declining. Both iPhone 6S (released this year) and iPhone 6 family (of last year) catered for customers that were yearning for phones with larger screens. Both of these phones serve as a better upgrade to the previous model which had a smaller screen size. The model slated for next year, iPhone 7, will not cater for this. The phone will only depend on those that want to upgrade from iPhone 6.

Apple however is already putting its house in order to ensure that the iPhone 7 attract a large volume of upgrades. Customers will be able to upgrade to the iPhone 7 after a year as a result of “The iPhone Upgrade Program” which was launched together with the iPhone 6S. The company is also trying to use pop-up advertisements in the iTunes platform to capture current users of iPhone 5S and convert them to upgrade to the newer model. If all these efforts are successful, they will go a long way in increasing the upgrade rate and also keep the sales figure of iPhone 7 ahead of what has been recorded so far this year.

However, iPhone 7 will still be a success in some areas such as generation of revenue for Apple, attracting new users to iCloud and also pleasing the existing customers that upgrade. Apple needs to deal with this perception of failure. It needs to put in place measures that will ensure no drop in sales figure for the iPhone 7 is recorded.

This perception of failure may be hard to overcome even if Apple considers the release of iPhone 7 next year to be a success.

Do you have any opinion as touching this issue being discussed? Let’s know what you think in the comment box below.

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