iPhone is losing its shine hard time for investors
Wall Street would like to know only one thing: will iPhone sales keep growing? when Apple reports its earnings this week.
Apple’s smartphone has truly become one of the very lucrative products, the technology industry has ever made. In the three months to December a year ago, Money-making was the iPhone that Apple reported the most profitable quarter of any US company on record.
However, the euphoria of this achievement shortly gave way to the daunting challenge of fitting or even surpassing such a record gain.
Most analysts predict that iPhone unit growth — the metric watched most closely by investors — will slow from about 35 per cent in the last year to the low single-digits for the next few quarters. But given the strength of its own performance this past year, concerns remain that that could be a stretch.’
Tim Cook, Apple’s chief executive, ignored questioning three months ago concerning the effect of Chinese macroeconomic changes on iPhone demand in its most important growth market.
Nonetheless, even Apple analysts who are normally less bearish have admitted the anxiety that iPhone sales might shortly find a year-on-year drop for the very first time since its launching.
Mr Munster predicts a 3 per cent rise in iPhone unit sales over the forthcoming year, a sharp slowdown from its growth rate of 25 per cent in the three months which Apple is predicted this week to report.
But Apple stock increased 3 per cent on Friday after a more powerful 7 per cent was called by a Morgan Stanley note iPhone growth rate for the coming year, mentioning demand surveys in America and China.
