iPhone 8 Anticipation Weighing On iPhone 7 Sales Count

Now Apple's iPhone users are starting to delay upgrading their handsets in anticipation of a major product revamp with the iPhone 8 this fall, Morgan Stanley analyst Katy Huberty said Tuesday

Huberty lowered her iPhone sales estimates slightly for fiscal 2017, which started Sept. 25, to reflect weaker iPhone 7 demand. But she raised her estimates slightly for fiscal 2018 on expectations for a "supercycle" of upgrades around the iPhone 8.

"Heading into the back half of the current iPhone cycle, we expect weaker iPhone shipments as buyers start anticipating new iPhones," Huberty said in a research report. "We also expect the company to manage channel inventory levels ahead of new products."

Huberty cut her fiscal 2017 iPhone unit sales estimates by 7% and revenue estimates by 3% because of higher average selling prices from a greater mix of iPhone 7 Plus units sold.