212 million iPhones were sold by Apple in 2016, which is 8% less than the previous year. Its rare for such a big company like Apple to suffer such loses. Because of this drop, the CEO Tim Cook takes a lot of criticism.
A Quartz columnists wrote that Steve Jobs decision to promote Tim Cook was his worst.
However new data from the Bernstein analyst called Toni Sacconaghi Jr along with his team suggest that the next few years for Apple are going to be fruitful. iPhone installed base is very large, and their annual upgrade rate is also very good, which means that it will self-generate future sales.
“Our analysis indicates that iPhone’s installed base will be nearly ~80% larger entering the iPhone 8 cycle than it was entering the strong iPhone 6 cycle,” the analytist said.
According to the data, the current iPhone base is at over 691 million phones. By the time 2018 hits, it will reach 855 millions.
As that time comes, 203 million users will want to replace their phones because they are too old.
The rate of upgrade is roughly 25% of all phones in the base.
This will make Apple expecting to get a year’s worth of new sales just from their old users.
Tim Cook promotion might not have been that bad, as he deserves the credit for creating such a large product.