In the past eight years, Apple Inc. has consistently increased its sales of iPhone units. But currently, sales growth has stopped - for the first time. It can't be determined if this is just a lull in sales, or more of a trend for the future.
It is apparent that both arguments are plausible. Firstly, the tech giant's results in fiscal year Q1 were robust. The company's growth was vigorous from 2014 to 2015 owing to China's massive demand, the restrained demand for bigger smartphones from the company's user-base, and favorable exchange rates.
But on the other hand, there are reports hinting that the increase in sales across Europe and the U.S. is rapidly falling. Based on the company's own estimates, only about 40 percent of its new users have upgraded to either an iPhone 6, 6s, or an iPhone Plus models.
It is also possible that more people upgraded their Apple smartphones in 2015 to take advantage of the 4.7-inch and 5.5-inch screens which were launched together with the iPhone 6. These people may have opted not to upgrade to the current 6s.
Previously, Timothy Cook, Apple CEO stated that the number of individuals who have upgraded to iPhone 6s is still quite small.
"We also look at the number of people that have upgraded, that were in the installed base prior to iPhone 6 and 6 Plus and that number is in the low 30 percentages," explained Cook regarding the company's fiscal Q4 earnings call.
The overall effect of this situation is that some would not upgrade very often, or if they do, it may take them a longer time.
For instance, if a person buys an iPhone 3G when it was launched, Apple would expect that person to upgrade to the 4s, then the 5s and finally the 6s. At the current situation, the frequency of upgrade is estimated to get more evenly distributed.
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