IPhone Shipments Set to Fall for First Time Since 2007

Expected to Total 210 to 220 Million This Year, Drop of 8.6% from 2015

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Apple's annual iPhone shipments will fall for the first time since 2007 this year, due to tepid demand for a new model, Japan's Nikkei Asian Review reported, citing people familiar with the matter.

IPhone shipments will total 210 million to 220 million this year, falling as much as 8.6% from 2015, the newspaper reported, citing an unidentified person at a major supplier.

Terry Gou, chairman of Hon Hai Precision Industry, better known as Foxconn Technology Group, told staff that demand for iPhones would remain "feeble" until at least early next year, according to Nikkei. Gou told Chinese Premier Li Keqiang in late May that the company's orders were declining this year, though Foxconn did get a sudden rush of orders in April and May. Foxconn makes about 70% of all iPhones.

Hon Hai declined to comment, and Apple didn't immediately return a request from Nikkei seeking comments. Apple has already reported that iPhone sales slowed in the first three months of this year and the company projected that would continue into at least the current quarter. The cooling off of demand for Apple's biggest revenue generator comes as some customers wait longer to upgrade their phones and amid stalled economic growth in China that has pared Apple's sales in that region. Apple introduced the iPhone in 2007 and sales have increased every year since.

-- Bloomberg News