Morgan Stanley has estimated an almost 7 percent decrease in the number of iPhone shipments in the current year. Correspondingly, the year 2018 is forecast as a year when there would be a 20 percent revenue increase.

Analyst Katy Huberty from Morgan Stanley estimates that the company would see a decline in shipments considering a weaker demand in the end half of the current cycle.

Purchasers are also anticipating new devices within the "supercycle." Therefore, the revenue estimation for 2017 is lowered by 3 percent, alongside a 7 percent decrease in the number of shipments. The average selling prices (ASP) have been forecast to increase by almost 4 percent due to a very strong demand for the iPhone 7 Plus.

The December quarter for the previous year and the March quarter in the current year will see a decrease in sales from the previously forecasted figures. The estimates for the fiscal year 2018 will see the iPhone's revenue increase by 6 percent on an annual basis, with a growth in the number of shipment estimates predicted at 20 percent. The fiscal year 2018 units are estimated at 253 million, and the ASP is expected to increase by at least 6 percent.

Apple Maintains Numero Uno

The company remains the top pick and is rated "overweight" with a target of $148 though the pre-market value is $118.67. The second half of the current fiscal year will also find consumers not holding themselves back from going ahead and purchasing the new releases of the iPhone — likely the iPhone 8 and iPhone 8 Plus — till the next model (possibly the iPhone 9) is unveiled.

In the recently concluded December quarter, the analyst has estimated that Apple will ship close to around 75 million iPhone units. The previously estimated figures from Huberty stood at 79 million and this is a decrease from her older forecast.

Huberty also reduced her estimations for the March quarter by almost 4 million handsets. These will be down from 55 million to 51 million. However, positive estimates are seen with the next and subsequent generations of iPhone models, the first of which is expected to be introduced in the fourth quarter of this year.

In the same quarter, consumers will likely be able to witness the launch of the iPhone 7s Plus, iPhone 7s and the premium iPhone 8 at the same time.

A feature which may immediately trigger interest among Apple lovers is the edge-to-edge AMOLED display with Touch ID embedded under the screen in the 2017 model. The smartphone is also expected to offer support for wireless charging.

Photo: Laura LaRose | Flickr

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