Apple is the new Nokia, analyst warns

Apple logoApple’s CEO Tim Cook has recently confirmed what we all knew since mid-October: sales of the new iPhones aren’t as high as anticipated and owners prefer to stick with their current devices rather than upgrade to the latest generation.

While Cook said the main factor for the weakening iPhone demand is the trade war between the United States and China, many believe the high prices of the 2018 iPhones are actually what convinced many potential buyers to hold on to their purchases.

Goldman Sachs says Apple admitting that iPhone sales are declining is just the beginning of a longer drop, adding that further revisions to the earnings guidance are likely throughout the year.

This is why analyst Rod Hall says Apple looks a lot like the old Nokia, which also struggled to remain relevant in the mobile market once its own business reached saturation and customers delayed upgrades to new-generation models.

“Nokia saw rapid expansion of replacement rates in late 2007 that was well beyond what any linear forecast would have implied,” Hall was quoted as saying. “Beyond China, we don’t see strong evidence of a consumer slowdown heading into 2019, but we just flag to investors that we believe Apple’s replacement rates are likely much more sensitive to the macro now that the company is approaching maximum market penetration for the iPhone.”

Hall says he expects Apple stock to drop to $140, down from his original forecast of $182.

“We see the potential for further downside to FY19 numbers depending on the trajectory of Chinese demand in early 2019. We have been flagging China demand issues since late September and Apple’s guidance cut confirms our view. We do not expect the situation to get better in March and would remain cautious on the region,” the analyst explains.

Apple has already turned to several damage-control measures due to lower iPhone sales, including adjusted production at its main suppliers. Reports claimed the company cut orders by as much as 50 percent, especially for the iPhone XR whose sales are the worst impacted this year.

Source: Softpedia

Tags: Apple

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
But anti-cheat software is apparently still an issue
 
Google Inbox was due to close down -- it was just a matter of when
 
The fine is for Google's activities in relation to AdSense between 2006 and 2016
 
The Stadia servers are capable of providing 4K, 60 frames-per-second performance
 
All EU Android users will get the option to turn down Google Search and Chrome
 
 
iPhone, iPad, and Apple Watch developers will be required to use the latest iOS and watchOS SDKs
 
The maximum number of people that you can have on a Skype video call right now is 25
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
     12
3456789
10111213141516
17181920212223
24252627282930
31




Poll

Do you use microSD card with your phone?
or leave your own version in comments (15)