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Is the iPhone in trouble? Demand for Apple's flagship handset has gone from worse to worse, according to analysts
- According to Wall Street analysts, Apple continues to fight against weak demand for iPhone
- China remains a major problem and members of the supply chain say their sales are down
- As worries grow around the iPhone, investors are now turning to Apple services, which are expected to be updated at the March 25 event.
There may be "iPhone tiredness" after all.
Several Wall Street analysts say that public demand for Apple's flagship handsets is worsening, especially in China.
The reports come after Apple released mediocre results for the last quarter, highlighted by sharp declines in sales revenue from China and by slower iPhone sales.
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There may be "iPhone tiredness" after all. Several Wall Street analysts say that public demand for Apple's flagship handsets is worsening, especially in China
"With the acceleration of iPhone demand on the horizon, we currently see no catalyst in the short term [profit] Shawn Harrison, an analyst at Longbow Research, wrote in a note to customers, according to Bloomberg.
"… The multiple price drops on the iPhone have not prevented Chinese research trends on the iPhone from further weakening, while vendor sales in February were catastrophic and slowed down on an annual basis compared to January. "
Harrison added that Apple's suppliers seem to be feeling the heat of weak iPhone demand, with 37 out of 42 supply chain companies reporting "worse sales than seasonal sales" for the previous three months.
Similarly, UBS analysts said the data showed that demand for Apple products in China was "still low," Bloomberg said.
"The annual rate of decline of Apple iPhones in February (-67% year-on-year) is similar to that of January and December," said UBS analysts.
Apple's struggles in China are by no means a new revelation. Apple CEO Tim Cook earlier warned investors last December that the weak economy in China will hurt revenues
Apple's struggles in China, however, are not a new revelation.
In its latest earnings report, the technology giant highlighted the sluggish sales of the world's largest smartphone market in the smartphone market.
Wider China's revenue fell 26 percent from last year, with sales in the region totaling $ 13.17 billion.
In its January letter to investors, Apple CEO Tim Cook cited the economic weakness of China, which accounts for 20% of its global sales, as one of the main reasons for "fewer updates from iPhone ".
In addition, earlier this year, Apple announced a price reduction for iPhones outside the United States.
Instead of linking the price of the device to the strong US dollar, it would attribute it to its market value in local currency, offsetting the price considerably.
That said, Harrison says price cuts have done little to boost iPhone sales in China.
In the face of growing concern over iPhone sales, Apple has been trying to focus attention on its Services segment. Apple should launch new services at its March 25 event in two weeks
Faced with growing concerns about iPhone sales, Apple has been trying to draw attention to its Services segment, which includes iCloud, iTunes, Apple TV and the App Store.
Investors are also turning to the service sector to allow Apple to continue fueling growth.
In the last quarter, Services revenue reached $ 10.8 billion, according to Wall Street estimates.
On Monday, the firm announced an event on March 25, during which it is planned to launch a new video streaming service and a premium news subscription plan.
He sent out invitations saying "It's the show's time," accompanied by a countdown before revealing the Apple logo.
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