Sales of iPhones will 'tumble' in 2016

Posted Dec 15, 2015 by Al Boe
Sales of Apple's wildly popular iPhone will "tumble" next year, according to predictions in a new report by Morgan Stanley.
File photo: Shoppers line-up outside an Apple Store on Fifth Ave. in New York
File photo: Shoppers line-up outside an Apple Store on Fifth Ave. in New York
Joakim Jardenberg (CC BY 2.0)
The analysis by financial analyst Katy Huberty predicts sales of iPhones may dip as much as 5.7 percent in 2016. This is a dip from 231 million units down to around 218 million units. If a decrease in sales does occur, this would be the first time in the iPhone's history that sales fell from one year to the next.
According to Huberty, the potential dip in sales will be due to "higher prices in international markets (ex-China) and maturing smartphone penetration in developed markets weighs on upgrades and new user growth."
The prediction is also coming off of a particularly strong sales period, as the iPhone 6S and iPhone 6S Plus sold 13 million units in three days, according to Business Insider Australia.
While one might assume falling iPhone sales will lead to falling revenue for Apple in general, Huberty doesn't believe that this will be the case. Instead, she predicts Apple revenue to grow by up to two percent thanks in part to the Apple Watch and Apple TV, according to Zdnet.
Earlier this month, in another Morgan Stanley analysis of Apple, it was reported that the Apple Music service was struggling in its first months. Only 15 percent of the music streaming users surveyed said they were using Apple Music. The service was also rated as the "least easy to use" of the streaming services, according to Investor's Business Daily.