Japanese website Nikkei is continuing the 2016 doom and gloom sentiment surrounding iPhone sales, reporting that an unnamed source has confirmed that sales figures and shipment numbers for Apple's smartphone lineup will see the first year-over-year decline since the iPhone debuted in 2007. The website cites "lukewarm demand for a new model" and a lack of innovation as the major reasons behind the predicted sales decline.

Specifically, iPhone shipments in 2016 are estimated to total between 210 and 220 million units, which would be a drop off of as much as 8.6 percent from 2015. The "people familiar with the matter" within Hon Hai Precision Industries noted that one of the company's executives described a lower iPhone demand for the remainder of this year, lasting "until at least early next year."

iPhone 7 Plus concept deep blue

iPhone 7 Plus design mockup in "Deep Blue"

"Hon Hai Precision Industry Chairman Terry Gou has told his staff that the demand for iPhones will remain feeble until at least early next year," a source said. Hon Hai, better known as Foxconn Technology Group, declined to comment.

Gou told Chinese Premier Li Keqiang in China in late May that the company's overall orders were falling this year, although Foxconn did receive a sudden rush of orders in April and May. Foxconn makes about 70% of iPhones sold globally.

Whether that means the supplier would begin working on the expected mega-cycle "iPhone 8," or another mid-cycle upgrade similar to the iPhone SE, early in 2017 is unclear. Nikkei's sources opine that Apple's attempt to shake up an upgrade cycle with no notable new hardware features by introducing new colors -- seemingly referring to the recently rumored Deep Blue -- proves "that the company now has no way of breaking out of the current doldrums."

Still, the 5.5-inch iPhone 7 Plus could come with a few notable new hardware revisions, namely a dual-lens camera that would allow for 2-3x optical zoom capabilities, clearer and brighter images, and the ability for users to refocus an image after taking a picture. Otherwise, the handsets are expected to remain largely in line with the iPhone 6s design, besides the potential removal of the headphone jack and redesigned set of antennae bands.

Related Forum: iPhone

Top Rated Comments

JimmyJimmyYam Avatar
115 months ago
If the headphone jack goes, and the dual camera is indeed limited to the Plus model, "new colors" isn't going to be anywhere near enough to tempt this longtime iPhone user to upgrade.
Score: 8 Votes (Like | Disagree)
576316 Avatar
115 months ago
I've pretty much made the decision to hold on to my 6 Plus for a third year after the snore fest that the next iPhone looks to be. Holding on to hope that the rumours about the 2017 redesign are true. The iPhone is starting to feel and look outdated. I even considered switching to a Galaxy S7 Edge but I'm too heavily invested in the Apple ecosystem and everything would fall apart. Also the fact I hate Samsung, Android and Google. But the S7 Edge does look pretty cool compared to the iPhone.

I get that the iPhone design is iconic but they could easily put a modern twist on it. Remember when the iPhone 4 got announced and everyone went crazy because it was such a departure from what we'd seen before? We haven't had a moment like that for a while. They could even make the iconic home button digital. Introduce an edge to edge display. Just make it actually look modern! I'm a huge Apple fanboy but slowly becoming frustrated and bored.
Score: 7 Votes (Like | Disagree)
Porco Avatar
115 months ago
I'm starting to think that when the iPhone 7 is released the Mac Rumors Buyer's Guide entry will be updated to 'Don't Buy'.
Score: 6 Votes (Like | Disagree)
Stella Avatar
115 months ago
Dropping sales, plus a saturated market should be an incentive for Apple to be pushing out innovative phones, rather than different colours, and the usual "thinner, faster, slimmer" line.
Score: 2 Votes (Like | Disagree)
Smith288 Avatar
115 months ago
Apple will eventually need to let go of the year to year design consistency and start adding in innovation to the hardware and software. Start expanding its capabilities that's been capable since jailbreaks were done all the way back in 2008.

Eventually, though, some of that innovation boom just levels out. But that's why apple was apple. They were able to innovate and provide something we didn't know we wanted. That seems to have gone with Jobs.
Score: 2 Votes (Like | Disagree)
Cheeseball13 Avatar
115 months ago
I'm focusing on the wrong thing, but that deep blue iPhone mockup sure is purdy.
Score: 2 Votes (Like | Disagree)

Popular Stories

iPhone 17 Pro 34ths Perspective

iPhone 17 Pro Launching Later This Year With These 10 New Features

Sunday March 23, 2025 10:00 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of March 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone ...
maxresdefault

Apple Releases iOS 18.4 With Priority Notifications, Ambient Music, New Emoji and More

Monday March 31, 2025 10:03 am PDT by
Apple today released iOS 18.4 and iPadOS 18.4, the fourth major updates to the iOS 18 and iPadOS 18 operating system updates that came out last year. iOS 18.4 and iPadOS 18.4 come two months after Apple released iOS 18.3 and iPadOS 18.3. Subscribe to the MacRumors YouTube channel for more videos. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to...
top stories 2025 03 29

Top Stories: WWDC 2025 Announced, iPhone 17 Pro and iOS 19 Rumors, and More

Saturday March 29, 2025 6:00 am PDT by
Apple's big developer event is a little over two months away, and rumors about what we can expect to see in Apple's next major operating system updates are becoming increasingly frequent. A public release of iOS 18.4 is also imminent with a number of updates and improvements, although we won't be getting the major Apple Intelligence Siri upgrades that had reportedly been planned for this...
Magic Mouse Green

What to Expect From the Magic Mouse 3

Saturday March 29, 2025 10:15 am PDT by
Apple is reportedly working on a new Magic Mouse. Below, we recap what to expect. The two key rumors for the Magic Mouse 3 so far include a relocated charging port, along with a more ergonomic design. It was briefly rumored that the Magic Mouse 3 would also feature voice control, but that was misinterpreted information. Relocated Charging Port While the Magic Mouse switched from...
iOS 18

iOS 18.4 Expected Next Week - Here Are the Release Notes

Friday March 28, 2025 2:01 pm PDT by
With the second release candidate of iOS 18.4 that Apple seeded out today, the company finally provided us with release notes that give a full rundown on what to expect. There's an Apple Vision Pro app, new Apple Intelligence features for notifications and additional language support, plus an Apple News Food feature for Apple News+ subscribers, and several updates that should improve the...
Foldable iPhone 2023 Feature Homescreen

Six Things to Know About Apple's Upcoming Foldable iPhone

Friday March 28, 2025 3:54 pm PDT by
We've been hearing rumors about a foldable iPhone for almost a decade now, but it looks like we might finally see the device come to fruition in 2026. We're going to be waiting many more months for the foldable iPhone, but so far we're hearing good things. Apple wants to make it creaseless. It's taken Apple multiple years to design a foldable iPhone that it's satisfied with because Apple ...
iOS 19 visionOS UI Elements

Apple Codename Provides Clue About iOS 19's Rumored New Design

Sunday March 30, 2025 6:40 am PDT by
Multiple sources have claimed that iOS 19 will introduce a new design with more translucent buttons, menus, notification banners, and more, and there is now another clue that points towards this glass-like appearance. Bloomberg's Mark Gurman today said the new design project is codenamed "Solarium" internally. A solarium is a room with glass walls that allow in plenty of sunlight, so this...
macOS Sequoia Feature

Apple Releases macOS Sequoia 15.4 With Mail Categorization and More

Monday March 31, 2025 10:04 am PDT by
Apple today released macOS Sequoia 15.4, the fourth major update to the macOS Sequoia operating system that launched in September. macOS Sequoia 15.4 comes two months after the launch of macOS Sequoia 15.3. Mac users can download the ‌‌macOS Sequoia‌‌ update through the Software Update section of System Settings. It is available for free on all Macs able to run macOS 15. With...