Apple's will cede market share to Samsung because of uninteresting iPhone 7: Analyst

KGI Analyst Ming-Chi Kuo predicts that the iPhone 7 will not be very interesting, resulting in a drop in sales and marketshare for Apple.

KGI analyst Ming-Chi Kuo is everybody's go-to-guy when it comes to information on Apple, a position he's established with the accuracy of his predictions these past months. In a recent report to investors, Kuo predicts that Apple's iPhone will not be as compelling as its predecessors. He predicts a comparative drop in sales coupled with a spurt in sales for competitors.

Apple does seem to be running out of ideas when it comes to their devices, if the recent launches are anything to go by. Kuo predicts the same. He says that the iPhone will not have "many attractive selling points" and that sales are expected to drop to somewhere between 190 million to 205 million range. In comparison, sales of previous iPhone units regularly hit the 230 million mark.

A drop in sales will mark the first year-on-year decline in Apple's iPhone sales and he predicts a 10 percent drop in revenue. That said, his report adds that Apple will still retain the lion's share of profits, but that it might cede market share to the likes of Samsung and Huawei, among others.

He expects a 1 percent increase in market share for Samsung, a 15.1 percent growth for Huawei (to 122 million), a  51.1 percent increase for OPPO (to 74 million) and 45.5 percent growth (to 64 million) for Vivo. Despite a predicted loss in market share of around 12-18 percent, Apple is still expected to hold on to the second-largest market share.

Adding that the iPhone is in serious need of a makeover, he predicts that even a redesigned chassis, which is expected to be announced, will not be enough for the iPhone 7. Apple is expected to completely redesign the iPhone in 2017. The redesign is expected to include an all-glass body, an OLED screen and maybe even a dual-camera setup in the Plus model.

There have been many rumours swirling around with regards to the iPhone 7. Some indicate that the device will get a dual-camera while others say that the dual-camera might only be for a Pro Plus model. Also rumoured is the death of the 3.5mm jack on the iPhone. If this is indeed the case, the Huawei P9 and LeEco Le 2 series of phones have already beaten Apple to the punch. The former introduced a novel dual-camera setup and the latter got rid of the 3.5mm jack.

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