Apple released its flagship smartphone on Wednesday Sept. 7 and it seems analysts are pessimistic about its upgrades and performance. The phone features a high-resolution camera and the option of a jet-black glossy finish but it has no headphone jack, making it not revolutionary.
"Overall, we thought that the phone was an improvement over previous models, but not a game changer that will reignite a significant upgrade cycle," analyst Sherri Scribner wrote in a note via Business Insider UK.
Shares for the Cupertino-based tech giant closed up 0.6 percent on Wednesday after the launch of the iPhones, but they were down over 2 percent at $106.04 in the morning trading on Thursday Sept. 8. This was similar to last year on the day the iPhone 6s and 6s Plus were released.
It is expected that Apple will sell between 14 and 15 million units of the new smartphones in the first weekend since the phones will be released in more countries than in the previous years. The manufacturer sold over 13 million units of the iPhone 6s and 6s Plus in the first weekend after the release in 2015.
Analyst Amit Daryanani told the publication that Apple margins could get a boost from the new iPhone attributed to sales of the more expensive iPhone 7 Plus that comes with relatively richer features. The company typically revamps the iPhone every year, although it considers big revamps once in two years. However, many analysts are anticipating a three-year cycle this time, leading up to a major refresh in 2017.
Wells Fargo analysts Maynard Um added via the same publication that while iPhone 8 has the potential to be a big cycle, there is limited visibility because of the off cycle. If history is an indicator, fans should believe it too early to be investable.
Oppenhemier pointed out that the new glossy jet-black model, available only in 128Gb and 256GB configurations, will boost the average selling price of the iPhone. Craig Hallum expected Apple to sell 211 million iPhones in the financial year ending September before bouncing back to an approximated 221 million in devices sales in 2017 and 240 million in 2018.
The flagship phones will start shipping in major markets, including the United States and China, on Sept. 16. This will give the manufacturer 14 days of sales this quarter as compared with two days for the iPhone 6s in the quarter a year-ago.
Apple said on Thursday that it would not release first weekend iPhone sales information, claiming the number was more a reflection of supply than demand, according to Reuters.
Watch the sneak peek below for more information on iPhone 7 features.