According to well-known KGI Securities analyst Ming-Chi Kuo, Apple has decided to cancel its 2017 annual upgrade of the iPhone SE.
New Apple Leak
According to Cult of Mac, the KGI Securities analyst Kuo is widely regarded as the best Apple analyst, so this rumor is highly likely to prove true. According to MacRumors, Kuo says that the high-tech giant has decided to cancel the release its 2017 update of the iPhone SE. This might come as a surprise, since most of the tech analysts agree that the company's budget friendly 4-inch handset has been a commercial hit. Apple iPhone SE is considered as a better buy than even the flagship iPhone 7, according to Forbes.
Reasons To Cancel iPhone SE 2017
Despite its lower starting price point, Kuo explains that dropping iPhone sales are the main reason for the potential decision. Apple might consider that releasing an updated version of the SE could negatively affect the profits of the more expensive iPhone 8, according to DigitalSpy. As its older components reduce in price, Apple could also increase margins on the 2016 iPhone SE sales if it is not releasing an updated version next year.
According to market analysts, Apple is far more interested in profit share rather than market share. Therefore, these reasons make financial sense on a business level. But the downside of this decision could be lower raw sales figures. According to Kuo, iPhone shipments might drop at least 10 percent in the second quarter of 2017. Compared to 40.4 million sales in the second quarter of 2016, sales will drop at circa 35 million units.
This wouldn't be the first time when Apple adopts such a decision. The company has previously skipped many years of MacBook Pro upgrades and iPad generations. Anytime when Apple has deemed existing models still get the job done, the company decided to skip an upgrade. However, now it would be the first time when Apple would pass over an iPhone.
