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KGI: iPhone 7 won't sell as well as the iPhone 6s

Contrary to remarks by carriers, one analyst firm is increasing how many iPhone 7 family devices that it thinks Apple will sell before the end of the year, but still expects fewer sales than the iPhone 6s garnered in 2015.




According to research provided to AppleInsider by KGI analyst Ming-Chi Kuo, the research firm has escalated its sales estimates from 65 million to between 70 million and 75 million, mostly because of the recall of the Samsung Galaxy Note 7 and the dual-camera feature in the iPhone 7 Plus.

However, the analyst firm believes artificial scarcity explains carrier reports of sell-outs and strong consumer demand, with both factors "not entirely due to market demand." KGI points to market share gains from carriers due to promotions inflating numbers, as well as a larger amount of launch countries spreading out stocks leading to depleted inventories world-wide.

Kuo points to low yields on the jet black casing, between 60 and 70 percent, as another reason for low stock of the desired iPhone 7 Plus. KGI is suggesting investors take profit now on near-term stock highs.

On Sept. 20, multiple South Korean analysts had a different viewpoint. In a combined report, Song Eun-jeong from Hi Investment & Securities believed that Apple can seize the top position in the premium smartphone market on the strength of the carrier promotions that KGI derided.

In the same report, IBK Investment & Securities analyst Lee Seung-woo revealed that South Korean suppliers had orders for components to build 80 to 85 million iPhone 7 units pre-launch, with an increase of 17 percent to 25 percent recently, pushing quantities over 100 million phones before the end of the year.

T-Mobile Chief Executive John Legere declared demand for the iPhone 7 a "phenomenon," and said that preorders up to Sept. 12 had been "like four times bigger than the iPhone 6."