Apple has had a disappointing run with the release of the iPhone 8 and iPhone 8 Plus mainly due to an immensely high anticipation of the iPhone X, which also happens to be the most expensive iPhone to date. However, one analyst claims that investors are putting too much faith in Apple’s crown jewel and states that the company will have to sell several million units more to beat expectations.
Analysts Shares Her Thoughts About iPhone X: Apple Will Need to Sell 45 Million Units More to Beat Expectations
In an interview with CNBC, Deutsche Bank analyst Sherri Scribner has said that based on Apple's current stock price, investors are too optimistic about the company’s future. She goes on to say that such investors are expecting that the tech giant pulls off a repeat of the year 2015, which is the first time the company transitioned to larger iPhones with the release of the iPhone 6 and iPhone 6 Plus.
To recap, the release of both these devices allowed Apple to generate revenue that was $31 billion above expectations. The most that Apple was able to garner with the release of the iPhone 6 and iPhone 6 Plus was a record 231 million units.
Expectations on Wall Street believe that Apple will be able to sell around 245 million units in fiscal 2018, but the analyst thinks the company will have to sell a total of 290 million units in order to beat expectations. She definitely thinks that Apple will not be able to reach this landmark.
“To beat expectations by a similar magnitude ($30B) this cycle would require that AAPL ship 45M more iPhone units in FY-18 than current expectations, or nearly 290M iPhones in total. We view this as highly unlikely. We believe it is more likely that unit forecasts decline, similar to the iPhone 6s cycle, and Street estimates for FY-19 need to come down to reflect a more realistic down year following the iPhone 8/X cycle.”
She is also pessimistic for the year 2019 since she says that sales will continue to drop throughout this year. Do you think that Apple will be able to beat expectations? Tell us your thoughts down in the comments.
News Source: CNBC