Increasing iPhone Prices Will Spell Trouble for Apple in the Future, Claims Analyst


Lots of people are still not sold on a $999 iPhone X and according to a piece of paper, Apple could be heading towards trouble if it is unable to contain the pricing of its devices.

iPhone X Is Not Selling Well Due to Rising Prices in the High-End Smartphone Category in General, According to Analyst

According to an investor note from the research firm Nomura Instinet, Apple could be headed towards trouble, courtesy of the rising iPhone prices. CNBC obtained the note, which has been written by the analyst Jeffrey Kvaal.

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Kvaal is under the impression that there has been a slight improvement in iPhone X so far in 2018 in terms of sales. He says that the downward trend in the supply chain indicated that iPhone sales expectations haven’t bottomed out yet.

He also adds that the overall situation of the high-end smartphone market doesn’t seem so encouraging, and it is largely because of price increases, as customers are not ready to spend exorbitant amounts on smartphones. He gives the example of the AT&T’s buy one, get one free iPhone X offer, which received a lukewarm response and was withdrawn in just 2 weeks.

He states that it isn’t surprising that Apple’s best product, the iPhone X, is experiencing problems. The Chinese vendors are instead focusing on mid-range handsets. This means that the average selling point of smartphones seem to have reached their upper limits and this isn’t just the case for the iPhone X. The same scenario seems to be evident with Samsung too, as Korean analysts from the Nomura Instinet said that the Galaxy S9 pre-orders were 30 percent lower than that of its predecessor.

Kvaal has lowered his iPhone sales unit forecast for the fiscal year 2018 from 226 million to 221 million units. However, his $175 price target for Apple shares remains the same. Kvaal’s analysis corroborates with previous reports that suggested that higher iPhone X prices haven’t done a favor to Apple, particularly in price-sensitive countries like India and China.

Perhaps Apple should rethink its pricing strategy a bit when it goes on release three new iPhones during the month of September.

News Source: CNBC