One of the interesting aspects of the forthcoming iPhone 7 is that the number of pre-orders granted by Apple will be double that of previous iPhone iterations, at least according to rumors. This seems like a radical move by the world’s leading consumer electronics company, particularly as the iPhone remains the dominant mobile in the marketplace. So the question is…why is Apple attempting to so massively increase the number of pre-orders that the iPhone 7 attracts?
iPhone decline
The obvious place to start in answering this question is Apple’s prediction that the number of iPhone units that it will shift in 2016 will decline from last year’s figure. Although the estimate is only a very slight decrease from 2015, this is nonetheless extremely significant, as Apple has always previously managed to increase the number of iPhone units that its sells every single calendar year. Apple has achieved this every year since 2007, but the consumer electronics giant now anticipates that this admirable run will be broken this year.
Apple has underestimated the potential of its devices previously, and Apple units have outsold the estimates of the corporation itself on several occasions. But it is obvious that the smartphone manufacturer is prepared for the market to receded significantly in 2016, and the decision to offer more pre-orders may be an attempt from Apple to deny its own predictions. Perhaps with the release of the affordable four-inch iPhone SE and an outstanding iPhone 7 release, it will still be possible for the corporation to achieve a moderate increase in the number of iPhone sales this year.
This must be viewed as particularly important, as the iPhone remains the revenue-generation engine of the company. Apple has shown a tendency to attempt to diversify its interests in recent years, and this is indeed considered a necessity by investors, who remain sceptical that the corporation can replace existing product lines which are now experiencing diminishing returns. Apple promised the city back in 2014 that it would create new lines and revenue streams, and this was initially successful in boosting its share price. But Apple stock has slid rather violently recently, and clearly the market-leading manufacturer must do something radical if it is to address the existing situation.
Google passes Apple
The travails of Apple in the marketplace and city has been underlined by the fact that Google has recently overtaken the corporation and become the company with the largest market capitalization in the world. It seems a while ago now that Apple bulls were suggesting that the market cap of the company had the potential to exceed $1 trillion in the foreseeable future, as Apple has slipped from a cap of over $700 billion to just over $600 billion over the last few months.
Naturally it is essential for the corporation to respond to this significant devaluation of its stock, and the obvious place to begin is with its iconic iPhone range. This is still by far the most significant product that the corporation produces, and it is thus simply the obvious contender when looking for a way to generate hype and extra revenue.
Big launch
With this in mind, Apple is likely to opt for a massive release when the iPhone 7 hits the stores, and it seems that the decision regarding pre-orders reflects this ethos. Apple is noted for its incredible launch events, in which enthusiastic consumers queue around the block to get their hands on the latest iDevices. But the recent releases of the iPhone 6S and Apple Watch have been rather muted by comparison, and this could certainly change when the iPhone 7 is unveiled.
Apple has already indeed indicated that the small-scale launch that the Apple Watch was afforded was not part of a new overall policy from the company, and that future iPhone releases would receive the usual fireworks and fanfare. It therefore seems that the iPhone 7 will be the first smartphone following this statement to be trumpeted ahead of its release, with Apple looking to generate as much buzz, interest and hype as possible in an attempt to elevate the number of units it is able to sell.
Another aspect related to the pre-order details for the iPhone 7 is the fact that it is widely expected that Apple will release more iPhone models in 2016 than in previous years. Some of the most credible Apple sources on the planet have suggested that an iPhone Pro is in the making in 2016, and if this device is delivered then this would mean that Apple would release three smartphones simultaneously for the first time in its history. Considering that these are all premium releases after the unveiling of the iPhone SE just weeks ago, and Apple would be hoping for sales of the devices to be particularly impressive.
iPhone 7 – Gulf in Apple schedule
Simply releasing three premium devices at once may explain the greater number of pre-orders, and this may be part of the reason why Apple is extending this critical aspect of the iPhone 7. It is also notable that there is likely to be no iPhone SE replacement to tide Apple over early next year, and with the second Apple Watch expected in the second half of 2016, it is clear that there could be a significant gulf in Apple revenue in the early months of 2017.
Apple is likely planning ahead for this time by ensuring that its iPhone 7 receives the best unveiling and release possible, with the aim of generating massive interest, sales and ultimately revenue. This will be an extremely important product release for Apple, not least because the corporation is likely to revolutionize the iPhone 7 when it is released, as this is considered to be a true next generation device.
The market-leading consumer electronics giant needs an excellent result from the iPhone 7, and doubling pre-orders of the device is merely the first stepping stone in this process.
