The final quarter of 2016 might not be the most prolific for Apple's sales, as renowned KGI Securities analyst Ming-Chi Kuo believes that demand for the iPhone 7 has peaked – just two months after its announcement. His reasons to think iPhone shipment forecasts will have to be revised include lack of technological surprises in the 4.7-inch iPhone 7 and shorter times for delivering online orders of the formerly hard-to-procure iPhone 7 Plus, which could imply slowing demand. However, the analyst isn't fixated on the latter, noting that fixed manufacturing capacity is also a factor in defining whether a device goes out-of-stock.
However, Kuo has reiterated that a year-over-year iPhone shipment decline is possible in the first quarter of 2017, due to the lower-than-expected demand and the strong competition in China, which keeps Apple from capturing highly desirable market share in the country. Low-cost domestic smartphones and intense shopping promotions, such as festivals and flash sales will make it hard for foreign brands to benefit from the Holiday season shopping sprees.
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