Are iPhone sales set for a record slump?

Apple is expected to report its lowest ever growth in smartphone sales

iPhone sales have experienced their slowest ever growth this quarter, Apple is expected to report today.

During its latest earnings call, Apple will reportedly announce a sales increase of just over one per cent for its iPhone range, according to Reuters.

If true, this is the slowest growth rate the iPhone has experienced since its launch, leading to speculation that the bubble may have finally burst.

Many factors are behind the slowdown, according to industry observers, who cite the economic downturn in China as a major cause, the country being one of the iPhone's major markets.

The iPhone may also be approaching a point of diminishing returns, thanks to plateaus in technological advancements.

Sales of previous iPhone generations continue to be strong, indicating that consumers do not feel that Apple's yearly device refreshes provide enough improvements to justify an upgrade.

Many are sticking with older models, or staying one model behind the current cycle.

Some are going with biennial upgrades, and are planning to move straight from the iPhone 6 to the forthcoming iPhone 7, skipping the 6s altogether.

The company also faces stiff competition from Asian rivals like Samsung, which has now become a serious competitor in the premium handset bracket.

Profit forecasts could be further dented by the news that the main iPhone manufacturing centre, a Foxconn plant in China, fell victim to fire this week.

There were no casualties, however, and a spokesperson insisted that production would not be adversely affected. 

The predicted downturn comes just a year after Apple recorded record profit and revenue thanks to demand for the iPhone 6.

Featured Resources

How to scale your organisation in the cloud

How to overcome common scaling challenges and choose the right scalable cloud service

Download now

The people factor: A critical ingredient for intelligent communications

How to improve communication within your business

Download now

Future of video conferencing

Optimising video conferencing features to achieve business goals

Download now

Improving cyber security for remote working

13 recommendations for security from any location

Download now

Recommended

iPhone 8 vs iPhone SE
Mobile

iPhone 8 vs iPhone SE

5 May 2020

Most Popular

Star Alliance passenger data stolen in SITA data breach
data breaches

Star Alliance passenger data stolen in SITA data breach

5 Mar 2021
I went shopping at Amazon’s till-less supermarket so that you don’t have to
automation

I went shopping at Amazon’s till-less supermarket so that you don’t have to

5 Mar 2021
How to find RAM speed, size and type
Laptops

How to find RAM speed, size and type

26 Feb 2021