Apple to drop iPhone SE upgrade in 2017 to increase profit margin

Apple may not launch an upgrade for iPhone SE next year due to counteract falling iPhone sales in recent years.

iPhone SE
Apple to drop iPhone SE upgrade in 2017 to increase profit margin Apple

iPhone sales forecast for 2017 looks appallingly gloomy with the renowned KGI analyst Ming-Chi Kuo predicting that Apple would be losing a major market share in China, due to the falling demand for the 4.7in iPhone in the wake of stiff competition from the local OEMs.

Consequently, the Cupertino company would look for ways to bring down the production and shipment quantities of iPhones to around 35-40 million units from 51.2 million units in 2016. Such a feat is possible by dropping the launch of an iPhone SE upgrade in 2017.

According to 9To5Mac, another theory has been proposed to counteract the impending loss of revenue with falling iPhone sales in recent years, wherein the company is likely to demand its suppliers to slash the component manufacturing cost in order to maintain a healthy profit margin.

Although display panel and PCB makers could yield to Apple's indomitable demands, it is unlikely that Samsung would offer its 3GB DRAM and 3D NAND flash modules at reduced prices owing to the lack of DRAM availability in the market.

Meanwhile, TSMC will continue to cater to Apple's price cut demand as its foundries are pre-booked by the company for large-scale production of iPhone components.