KGI's Dire Warning: Apple iPhone Sales Could Be Below 2014 Levels
Ming-Chi Kuo, an analyst at KGI Securities that has a notable track record of success in examining and predicting Apple Inc. (NASDAQ: AAPL)'s outlook, issued a dire warning that Apple investors should pay attention to.
9 To 5 Mac, citing Kuo's latest research report, noted Apple could see its iPhone shipments in 2016 fall below 2014's level. In fact, the analyst predicted that Apple would be the only smartphone manufacturer among the world's top 5 that will see a decline in shipment year over year.
The analyst's dire warning implies that Apple will under-perform the broader smartphone industry for the first time ever.
9 To 5 Mac added that Kuo's "worst case scenario" implies Apple will ship 190 million iPhone units in 2016, lower than the 193 million units it shipped in 2014. Under a "best case scenario," Apple will ship 205 million devices - marking a decline of 11.6 percent year-over-year.
Kuo suggested the iPhone SE will have little impact on Apple's overall sales and a potential iPhone 7 upgrade won't have "many attractive selling points." The analyst stated Apple needs a visual overhaul of its iPhone device and new commercial features to keep attracting customers.
"Kuo has a strong track record when it comes to Apple predictions, meaning these numbers should be taken with some seriousness," the popular all-things Apple related blog concluded. "This isn't the first time we've heard an analyst issue dire numbers for Apple, but Kuo generally isn't an analyst who acts like the sky is falling every time Apple underperforms."
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