Worldwide smartphone shipments will reach just over 1.4 billion units in 2016 representing a 5% on-year increase, according to Canalys. During the year, Apple is set to post its first annual decline in iPhone shipments, said the research firm.

Despite the new iPhone, Canalys expects Apple's worldwide shipments will decline in 2016 as it continues to struggle in China. "The launch of the iPhone 6 saw Apple's shipments in Greater China skyrocket, but the company has struggled to maintain this momentum," said Canalys research analyst Jessie Ding. "The iPhone 6s had a lackluster reception in comparison and the iPhone SE is unlikely to make a big difference to Apple's fortunes in the region this year."

"Huawei, Oppo and Vivo offer products with better specifications at significantly lower price points," Ding continued. "The iPhones lack features such as waterproofing and wireless charging. Apple needs to catch up with the competition if it wants to compete."

In addition, smartphone shipments in Asia Pacific excluding the Greater China region are expected to grow 13% in 2016, Canalys indicated. "The smartphone markets in India and the Philippines are performing well in 2016, with annual growth expected to reach 21% and 26% respectively," said research analyst Ishan Dutt. "Smartphone penetration in these markets remains low, meaning there is a big opportunity for vendors."

"Growth in established markets is harder to find but, despite shipment declines in the first two quarters, we expect Western Europe and North America to return to growth in the second half of the year," Dutt continued. "Both regions will end 2016 with single-digit percentage shipment increases, helped by the launch of a new iPhone."