why the iPhone 7 sales will be huge!

A little while back this year Apple acknowledged that iPhone sales have been going down; it was a historical event because the company has never admitted defeat before. While most analysts predict that iPhone sales will continue to decline for the rest of the 2016, statistics indicate the opposite:

Tim Long (Capital Markets Analyst) from BMO suggests that iPhone 7 that is scheduled for September this year will generate record-breaking sales. Here’s the justification:

At present Apple has a larger number of users than it has ever had in the past and a large proportion of them own devices that are at least 2 years old. Hence calculations predict that 25% of existing iPhone users are likely to upgrade to the iPhone 7 this year; that’s an estimated 120 million customers!

Tim long explained that on average 17% of Apple users upgrade their phone every year, i.e they get every new model. On the contrary about 58% upgrade a year later and 22% wait another extra year. That leaves us with only 2% people who tend to cling longer to an old model.

The trend of declining sales in the last few years represents that currently there are more people who own iPhones older than last year’s model. As a result there will be a boom in upgrades this year and iPhone 7 will sell like hot cakes!