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Following weak sales of its latest smartphones, Apple has announced a decline of 15% in the number of iPhone for the December quarter. The company attributed its responsibility to the deterioration of diplomatic relations with China and the weakening of the economy of the country of the Far East. However, if an investor's note were to pass, Apple's worst days would soon be behind it.
The inventory of the iPhone XR finally begins to be cleared in China, but the most expensive models are still in difficulty
According to UBS analyst Timothy Arcuri, the inventory of the iPhone is being erased in China, probably because of price cuts. The purchase estimates for the iPhone XR have actually increased for the June quarter, which is not typical of a new model at this point in its cycle. The signs of inventory burn have led UBS to increase its estimates for iPhone shipments for the next quarter from 32.5 million to 34.5 million units. However, this increase is mainly based on the prediction that the sale of older models such as the iPhone 8 and the iPhone 8 Plus will resume in the coming months.
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The company also estimates that the demand for the cheapest 2019 pack, the iPhone XR, will increase by 3 million in the June quarter. However, this would probably be offset by lower sales of the iPhone XS and the iPhone XS Max. UBS has revised its revenue estimates from $ 50 billion to $ 50.4 billion, although the average selling price is expected to rise from $ 683 to $ 655, as older, cheaper models are expected to sell more than new ones exorbitant prices.
Although sales of iPhones prior to 2018 are expected to increase by 5 million euros in March, shipments of the 2019 iPhone range are also expected to decline, and UBS has therefore not reviewed his estimates 40 million units for the current quarter. Due to the expected increase in the sale of older models, the average selling price has been reduced from $ 711 to $ 687 and iPhone revenue estimates have been revised to $ 30.2 billion USD
Although the latest UBS rating indicates that iPhone sales will improve in the coming months, other analysts may not agree. For example, HSBC warned investors that Apple's sales would slow further in China as consumers switched from the iPhone to Huawei and Samsung. However, as Tim Cook has said, we will have to wait and see how the price reduction strategy works in China.
Source: AppleInsider
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