I'm curious what apple's game is, they're typically more market savvy than to market what I'm hearing is coming out, we shall see.
I think this is the "burn it down" generation for Apple. And business textbooks will look back at this cycle as yet ANOTHER brilliant move Apple has made that no other company would make.
iPhone sales expectations became a monster in their own right. All these investors kept expecting exponential growth in a pretty saturated market, something had to give.
The iPhone 7 is meant to reset expectations. Given how it will be a 6S with new features regular people marginally care about (a Galaxy-level camera finally, a new SoC, water resistant but not waterproof, etc.), along with a HUGE omission that will capture headlines for MONTHS (get ready for "Headphonegate" everyone), and the iPhone 7 will be widely regarded all as a flop and everyone with two braincells will "predict" that the iPhone as a product category is done-for.
Then once expectations are lower, Apple releases the "Ten Year Anniversary Edition" in 2017 with the edge-to-edge OLED screen and wireless charging we here have wanted on an iPhone since last year. THAT iPhone will be a HUGE hit, HUGE, like the hottest selling iPhone ever. No one will care it also lacks a headphone jack, nor will they remember how bad this 2016 cycle was. All the headlines will be "Apple/The iPhone is BACK!" and investors will pump up Apple stock giving it the resources it needs to move into a post-iPhone world (cars?) when it's clear today the 2017 model will probably be the last exciting iPhone for a while.
I am not worried for Apple, they have the resources to ride through a "rough" year. I have gotten to the point where I feel bad for the poor people who buy iPhones off the "S Cycle," those people have been getting screwed for years (outside of the iPhone 5):
iPhone 3G- Weak SoC, faster speeds but held back by weak SoC
iPhone 3GS- monster SoC for the time with the same GPU as the much larger iPad
iPhone 4 - borked antenna, and a retina screen with the same GPU as the 3GS. Didn't age well due to a low power-per-pixel
iPhone 4S - Siri, 512mb RAM, got updates longer than any smartphone ever made
iPhone 5 - fast SoC, more effective RAM than two phones that followed it, larger screen, the greatest non-S iPhone ever
iPhone 5S - fingerprint reader, monster SoC, more power-per-pixel than phone that followed it, still not outdated in looks thanks to SE model
iPhone 6 - tragedy of 1GB of RAM combined with a behind-the-market camera, kinda weak SoC relatively, bends too easy
iPhone 6S - 2GB of RAM, monster SoC compared to 6, harder to bend, force touch is actually useful sometimes
iPhone 7 - better camera, maybe more RAM on plus model, and probably a MONO set of two speakers, in trade for losing a functionally perfect jack used to transmit audio since the 1970s
iPhone 8 - OLED edge to edge, doesn't matter what else it has as this is what the iPhone line needs more than ANYTHING as LCD screens and bezels are blah
Really goes to show that people who have bought on the non-S years have just gotten screwed and will continue to be screwed while those who bought S model got some of the best value the smartphone industry will ever see.