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Apples The latest iPhones have had a difficult time since their announcement in September 2018. The fourth quarter figures have an unprecedented warning about the benefits of Tim Cook and his team. However, there are signs that the second quarter of 2019 will show improvement.
While this is good news for sales above expectations, the distribution of popular units to customers will do for the uncomfortable reading. The new handsets iPhone XS, XS Max and XR should be rejected by the older and cheaper models, including families iPhone 7 and iPhone 8. Roger Fingas at Apple Insider& nbsp; reports on the latest analysts' figures at UBS:
UBS is increasing its estimates for the iPhone for the June quarter from 32.5 million to 34.5 million, but mainly because Apple is expected to sell more models prior to 2018. While UBS expects 3 million additional sales for the iPhone XR, it expects an equal decrease in shipments of iPhone XS and iPhone XS Max.
This will lower Apple's average selling price by phone and limit the use of "genius" technologies such as FaceID, which are not present on older models. And if iOS supports older devices, the software can do nothing to replicate a newer technology that can pull the platform forward and match the latest Android-based manufacturer offerings.
IPhone 8 product (red) (image: Apple PR)Apple
Where does this use case pose the most difficulty? China. Regardless of all the features or power of iOS, the Chinese market is focused on the new, very high-end specifications and operation of a hardware component of WeChat. The latter is pretty much universal and iOS offers no benefit, while older countries have seen Apple outperformed since the launch of iPhone XS and XS Max.
Mid-cycle pickup is simply not there for the new iPhones design, which focuses on premium features and premium pricing. While Apple remains stable in the saturated markets of the US and the EU, its strategy goes against the needs of countries where there is still significant growth capacity.
Now, read why Apple should not have canceled the iPhone SE without a replacement …
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The latest iPhones from Apple have had a difficult time since their announcement in September 2018. The fourth quarter figures gave rise to an unprecedented warning about the profits of Tim Cook and his team. However, there are signs that the second quarter of 2019 will show improvement.
While this is good news for higher than expected sales, the breakdown of popular units with customers will make reading difficult. The new handsets iPhone XS, XS Max and XR should be rejected by the older and cheaper models, including the iPhone 7 and iPhone 8 families. Roger Fingas of Apple Insider releases the latest figures from UBS analysts :
UBS is increasing its estimates for the iPhone for the June quarter from 32.5 million to 34.5 million, but mainly because Apple is expected to sell more models prior to 2018. While UBS expects 3 million additional sales for the iPhone XR, it expects an equal decrease in shipments of iPhone XS and iPhone XS Max.
This will lower Apple's average selling price by phone and limit the use of "genius" technologies such as FaceID, which are not present on older models. And if iOS supports older devices, the software can do nothing to replicate a newer technology that can pull the platform forward and match the latest Android-based manufacturer offerings.
IPhone 8 product (red) (image: Apple PR)Apple
Where does this use case pose the most difficulty? China. Regardless of all the features or power of iOS, the Chinese market is focused on the new, very high-end specifications and operation of a hardware component of WeChat. The latter is pretty much universal and iOS offers no benefit, while older countries have seen Apple outperformed since the launch of iPhone XS and XS Max.
Mid-cycle pickup is simply not there for the new iPhones design, which focuses on premium features and premium pricing. While Apple remains stable in the saturated markets of the US and the EU, its strategy goes against the needs of countries where there is still significant growth capacity.
Now, read why Apple should not have canceled the iPhone SE without a replacement …