Predictions and rumors have taken Apple by storm as many trade analysts and gossip vines are working overtime to spread news and stories about Apple’s poster boy: iPhone. And the latest is UBS, which predicts depressed iPhone sales in 2020.
However, the financial services company predicts that iPhone sales will be bullish in the long run. Against this positive picture, well-known Apple analyst Ming-Chi Kuo has recently predicted that sales of iPhone will be down 15% y-o-y in the second quarter. But Kuo predicted that iPhone would perform better in the second half of the year.
iPhone Sales Bullish in Long Term: UBS Analyst
UBS analyst Timothy Arcuri shared a note with Business Insider; the analyst says that Apple has to suffer this bad phase until next year’s models are released.
“Apple hit a wall trying to sell iPhones in the holiday quarter last year. It may not get past that obstacle until late next year.”
Timothy Arcuri further noted:
“That’s the assessment of Timothy Arcuri, a financial analyst who covers the electronics maker for UBS. Apple’s iPhone sales problems have almost certainly carried over into the current quarter and likely will plague the company for the rest of its fiscal year, which ends in September, Arcuri said in a research note on Monday. He doesn’t expect the company’s smartphone sales to rebound until it introduces its 2020 models in the fall of next year — and even that outlook is uncertain.”
Apple’s biggest market, China, has become a major headache for the company as it has seen poor sales within the country. Moreover, US authorities have imposed tariffs on iPhones made in China but sold within the US.
Arcuri notes that the end of war won’t bring any good news for Apple as it will be too late for the company.
Arcuri said, “We believe the challenges in China would likely to continue and while a trade settlement could help, the damage in terms of iPhone is likely done.”
Since Apple has stopped releasing the number of unit sales, analysts have to rely on revenue figures released by the company. Based on the revenue prediction of iPhone, Business Insider notes that lower sales than others are expected.
“Arcuri didn’t offer an estimate for how many iPhones Apple will sell in 2020, but his revenue guidance for the year implies that he’s forecasting continued depressed sales. He expects Apple to post $136 million in iPhone revenue in its 2019 fiscal year and $141 million in fiscal 2020. In fiscal 2018, Apple pulled in about $165 million in iPhone sales.”
UBS is not all negative about iPhone sales. The bank says if Apple introduces a foldable model in 2020, there is a chance that sales may resurface from the current slump. Apart from new technology, the bank based its predictions of Apple’s bullish performance on its growing Services revenue.
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