Weak iPhone 7 Demand Predictions Continue With 'Conservative' Chip Orders

Apple "is being more conservative" when placing its orders with chip assembler Advanced Semiconductor Engineering, once again suggesting that the 2016 "iPhone 7" will face a weaker demand in comparison to normal cycles, due to a dearth of hardware innovation in the handset (via Nikkei). Apple wasn't specifically mentioned during ASE's recent shareholder meeting, but a reference to "the big client in the U.S." overtly ties in with Apple, which contributed 31.2 percent of ASE's $8.73 billion revenue in 2015.

iPhone-6s-main

"The big client in the U.S. is a little more conservative when placing orders this year," said Tien Wu, ASE's chief operating officer, ahead of the company's annual shareholder meeting.

"In the smartphone market, meanwhile, other players besides Apple are more aggressive regarding booking chips this year," Wu said. But, he added, "I don't think anybody is overly aggressive this year, so I don't think there would be any serious inventory correction issue similar to last year."

The doom and gloom forecast for iPhone sales this year have reached a high point in the middle of 2016, with recent reports suggesting the iPhone 7 is unlikely to reverse recent year-over-year declines in sales for the company. Most rumors cite the same reasons: consumer apathy due to a lack of innovation in comparison to last year's iPhone 6s and iPhone 6s Plus.

The biggest hardware revisions of the iPhone 7 are predicted to center around the removal of the 3.5mm headphone jack, the addition of a new dual-lens camera (possibly only on the 5.5-inch model), and restructured antenna bands. Otherwise, the devices are expected to look similar to the iPhone 6s form factor, with a mega-cycle upgrade hitting in 2017 in time for the line's ten-year anniversary.

Tag: Nikkei
Related Forum: iPhone

Popular Stories

iPhone 17 Pro 3 4ths Perspective Aluminum Camera Module 1

New iPhone 17 Pro Details: Brighter Display, Best Battery Life, and More

Wednesday September 3, 2025 5:33 am PDT by
Apple's iPhone 17 Pro and iPhone 17 Pro Max models will feature a number of significant display, thermal, and battery improvements, according to new late-stage rumors. According to the Weibo leaker known as "Instant Digital," the iPhone 17 Pro models will feature displays with higher brightness, making it more suitable for use in direct sunlight for prolonged periods. The iPhone 16 Pro and...
iPhone 17 Pro Iridescent Feature 2

iPhone 17 Pro Clear Case Leak Reveals Three Key Changes

Sunday August 31, 2025 1:26 pm PDT by
Apple is expected to unveil the iPhone 17 series on Tuesday, September 9, and last-minute rumors about the devices continue to surface. The latest info comes from a leaker known as Majin Bu, who has shared alleged images of Apple's Clear Case for the iPhone 17 Pro and Pro Max, or at least replicas. Image Credit: @MajinBuOfficial The images show three alleged changes compared to Apple's iP...
iphone 16 pro ghost hand

iPhone 17 Pro: 5 Reasons Not to Upgrade This Year

Monday September 1, 2025 4:35 am PDT by
Apple will launch its new iPhone 17 series this month, and the iPhone 17 Pro models are expected to get a new design for the rear casing and the camera area. But more significant changes to the lineup are not expected until next year, when the iPhone 18 models arrive. If you're thinking of trading in your iPhone for this year's latest, consider the following features rumored to be coming to...
iPhone 17 Pro Iridescent Feature 2

iPhone 17 and iPhone 17 Pro Prices Estimated Ahead of Apple Event Next Week

Tuesday September 2, 2025 1:50 pm PDT by
Just one week before Apple is expected to unveil the iPhone 17 series, an analyst has shared new price estimates for the devices. Here are J.P. Morgan analyst Samik Chatterjee's price estimates for the iPhone 17 series in the United States, according to 9to5Mac: Model Starting Price Model Starting Price Change iPhone 16 $799 iPhone 17 ...
iPhone 17 Pro Dark Blue and Orange

iPhone 17 Release Date, Pre-Orders, and What to Expect

Thursday August 28, 2025 4:08 am PDT by
An iPhone 17 announcement is a dead cert for September 2025 – Apple has already sent out invites for an "Awe dropping" event on Tuesday, September 9 at the Apple Park campus in Cupertino, California. The timing follows Apple's trend of introducing new iPhone models annually in the fall. At the event, Apple is expected to unveil its new-generation iPhone 17, an all-new ultra-thin iPhone 17...
iOS 18 on iPhone Arrow Down

Apple Preparing iOS 18.7 for iPhones as iOS 26 Release Date Nears

Sunday August 31, 2025 4:35 pm PDT by
Apple is preparing to release iOS 18.7 for compatible iPhone models, according to evidence of the update in the MacRumors visitor logs. We expect iOS 18.7 to be released in September, alongside iOS 26. The update will likely include fixes for security vulnerabilities, but little else. iOS 18.7 will be one of the final updates ever released for the iPhone XS, iPhone XS Max, and iPhone XR,...
iPhone 17 Pro on Desk Centered 1

Survey: Nearly 70% of Users Plan to Upgrade to iPhone 17

Monday September 1, 2025 8:24 am PDT by
A new survey has found that nearly seven in ten iPhone owners in the United States plan to upgrade to an iPhone 17 model, signaling strong demand ahead of Apple's expected unveiling of the devices at its September 9 keynote. Smartphone price comparison platform SellCell surveyed over 2,000 U.S.-based iPhone users in August to assess upgrade interest and brand loyalty before Apple's event....

Top Rated Comments

JonneyGee Avatar
120 months ago
I've said this elsewhere before: changes to contract structures will influence sales numbers in the US more than anything else. Now that phone prices aren't subsidized here anymore, people will wait longer to upgrade. This will not only affect Apple but also all Android manufacturers. Apple is smart to shift to a 3-year cycle as that likely reflects the new reality for most of the customers here.

Overseas, their sales gain each year has mostly been from reaching new countries. There's a glass ceiling there as well as upgrades will be even less frequent in many other countries.

None of this means "peak Apple" has passed – it only means that the market has matured and every company has to shift the way they do things. Apple will be just fine.
Score: 37 Votes (Like | Disagree)
AppleFan91 Avatar
120 months ago
Man, if the Note 7 is what the leaks are showing and Apple comes out with a phone that has a better camera and removes the headphone jack, they'll see a lot of switching. I love iOS, but the hardware is lagging behind so much now it's getting bad. I mean where's the wireless charging, where's the fast charging, the OLED display,waterproofing, etc. they say it isn't ready and Apple is doing it next year, why? Competitors did it 2 years ago. Is it to protect the margins? Cuz those will shrink for other reasons soon enough.
Score: 15 Votes (Like | Disagree)
QCassidy352 Avatar
120 months ago
Unless they have successfully kept something from the rumor mill, this is shaping up to be the smallest upgrade they've ever done, one year after what is arguably the previous smallest upgrade they've ever done. Not good.
Score: 14 Votes (Like | Disagree)
msi92 Avatar
120 months ago
Apple take notice! this is a sign.

People want something new!
Score: 12 Votes (Like | Disagree)
CmdrLaForge Avatar
120 months ago
Lack of demand even with this fantastic innovation of tossing the headphone jack? Unbelievable !! Cannot innovate my a.....
Score: 11 Votes (Like | Disagree)
thisisnotmyname Avatar
120 months ago
Apple take notice! this is a sign.

People want something new!
Just anything or are there specific missing features that make you not want the next handset?
Score: 9 Votes (Like | Disagree)