Apple Might Continue to Witness Low iPhone Sales Until Fall 2020, UBS Analyst Claims
Apple recently slashed its revenue forecast for the first time in many years and attributed it to the weaker than expected iPhone sales in China. Esteemed Apple analyst Ming-Chi Kuo recently said that he expects iPhones sales to be down 15 percent year-on-year in the second quarter of the fiscal year, but he thinks the situation would get better in the second half of the year. However, these thoughts aren’t echoed by UBS, as the bank thinks that the downward trend would continue well into 2020.
iPhone Sales Might Not Pick up Unless the Company Releases a 5G Ready and Foldable iPhone
According to UBS analyst Timothy Acuri, iPhones sales will remain depressed until next year’s iPhones are released. The analyst notes that the company giant hit a wall in the holiday quarter in 2018 and the situation is unlikely to improve before the end of 2020. In fact, Arcuri isn’t even certain about a sales rebound in 2020 when new models are released.
Apple has been trying hard to boost the sales of its latest iPhones. The company is running trade-in promotions in its stores across the world, but it seems that the efforts aren’t quite paying off. The situation might get slightly better with the release of this year’s models, which are expected to feature a new rear design and a smaller notch.
iPhone sales in China might also improve a bit in the future, as it is expected that iPhone sales would rake in revenue of $136 billion in the fiscal year 2019 and $141 billion in the fiscal year 2020. However, even after the ongoing trade war ends and the situation improves, it wouldn’t be enough to offset the damage that has been done, according to Arcuri.
UBS also reports that Apple sold 64 million iPhones in the holiday quarter, which is lower than Wall Street’s forecast of 68 million. Apple has decided to stop reporting unit sales, which means that analysts will now have to estimate sales figures with the help of revenue figures released by the company. UBS does believe that the situation may improve in the fiscal year 2020, provided that the company releases a foldable device as well as a 5G-ready phone.
In fact, Apple has been rumored to launch a foldable iPhone in 2020, but we’ll see if the technology giant actually brings such a device to the market.
News Source: Business Insider