“The sheer size and volatility of Apple’s earnings are tipping the technology sector’s earnings the wrong way,” Rayhanul Ibrahim reports for Yahoo Finance. “Currently, the technology sector’s earnings are projected to decrease by 3.9% year-over-year, based on analysts’ EPS estimates.”

“Over the past six quarters, Apple has single-handedly controlled the tech sector’s growth rate. Back in 2015, the tech sector would have been in the red every quarter without Apple,” Ibrahim reports. “This influence is most pronounced back in Q1 of 2015, where earnings would have declined by 4%, but instead increased by 3%, thanks to Apple.”

“However, this trend is now hurting the tech sector. The aforementioned 3.9% expected decline turns into a 2.2% gain in the second quarter, once you strip out Apple earnings,” Ibrahim reports. “Investors may not need to worry for long, though. Right now, Apple is on the ‘S’ refresh of its iPhone upgrade cycle, and sales generally decline during this phase as the ‘S’ refresh generally doesn’t have as many new features or as unique a design.”

Read more in the full article here.

MacDailyNews Take: We’ll have to see about this “iPhone 7” family which, if rumors prove correct, won’t have much of a unique design (exterior) vs. the iPhone 6/6s families.

Even without a unique exterior design, there is much pent-up iPhone demand just waiting for the iPhone 7.

SEE ALSO:
Analyst: Apple’s iPhone 7 will see 12% growth over iPhone 6s – July 11, 2016
Study: Half of all current iPhone owners will upgrade to Apple’s next-gen iPhone – July 7, 2016
Pacific Crest: iPhone users grew by over 70 million during the iPhone 6 cycle and will drive significant growth in upgrade volume – May 23, 2016

[Thanks to MacDailyNews Reader “Tom R.” for the heads up.]