iPhone 7 Delay
The Taiwanese chipmaker thought to be the sole provider of the A10 chip that will power the iPhone 7 has been affected by the earthquake that hit last week. REUTERS/Robert Galbraith

The newly released Apple iPhone 6S and 6S Plus smartphones are receiving good reception from customers. However, a market research conducted by a Morgan Stanley analyst suggests that the iPhone sales are likely to crash in 2016.

According to Business Insider, market analyst Katy Huberty’s report has stated that sales of the iPhones will decrease by 5.7 percent during the fiscal year of the company that begins in October. In fiscal year 2015, Apple sold 231.1 million iPhones but in the fiscal year 2016, the company is expected to sell 218 million iPhones. The report has revealed that it will be first year of the company to encounter a reduction in sales of iPhones.

Until now, Apple has never met with negative sales for iPhones. Huberty has added that the drop in sales will not be caused by weak demand for iPhones. Instead, because of high inventory, the Cupertino company will be reducing the orders of the components of the iPhones by 10 percent.

Huberty has maintained that Apple is a very strong brand and her prediction on iPhone sales in 2016 were on the basis of worst-case scenario. The other reason that can result in reduction of iPhone sales is the higher prices of Apple smartphones in international markets like China.

According to Cult of Mac, in August this year, Pacific Crest had stated that the investors should be prepared for the lower iPhone sales in 2016. Even KGI Securities analyst, Ming-Chi Kuo had recently predicted that the iPhone sales will slow down next year.

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