Apple has been struggling against concerns about its iPhone line and now it has reported a decline in sales. However, this has not stopped the attention over its future releases as more details about the Apple iPhone 7 surfaced but not without shedding light to the iPhone 8 as well.
Apple’s iPhone growth has been a source of concern for quite some time and now fears have been confirmed: the iPhone growth era has slowed down. RBC’s Amit Daryanani told CNBC that 2016 is like Apple’s “hangover” year but it does not mean that the company cannot find ways to monetize streams. According to the analyst: “the reality is Apple iPhone units will keep growing longer over the next 3 to 5 years, Apple gross margins will go higher and they will monetize more per iOS device.” Although iPhone sales cannot entirely bring back the company’s stock performance, the iPhone 7 is expected to boost the cycle and stock upward.
If patents are any indication, the company is expected to include a small form factor high-resolution camera. According to the patent released under the U.S. Patent and Trademark Office, Apple is working on a small camera lens system that requires lesser space on mobile devices like smartphones and tablets. According to the patent’s abstract: “The camera may be implemented in a small package size while still capturing sharp, high-resolution images, making the camera suitable for use in small devices.” According to reports, Apple should stick with its usual timeline and release the iPhone 7 around September. It is also expected to run with the all-new A10 processor and iOS 10.
Nonetheless, even with the details of a more improved iPhone 7, analysts think that Apple should gain more progress with the iPhone 8. According to Cowen’s Tim Arcuri in a discussion with CNBC as well: “To me, Apple has really entered this period of transition…7 will help…you can re-tap the buyers of the big 6 cycle.”
“I’m not saying Apple won’t grow, I’m just saying we’re in a period of transition and we’re going to have to have the ‘next big thing’…” He added.