Apple Stock Downgraded Following iPhone Sales Predictions

AlphaAtlas

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CNBC reports that a Guggenheim Partners analyst predicted a 5% decline in 2019 iPhone sales, and naturally, other analysts have cut down price targets in response. The word of financial analysts tends to form a kind of self-fulfilling prophecy, and sure enough, Apple's stock price seems to be steadily dropping today. The price is down from $216 on October 26, the day Apple released their new iPhones, to about $187 at the time of this post. Apple recently stopped breaking out unit sales, presumably to make their sales numbers look better, but that doesn't appear to be appeasing investors today.

"We are concerned that end demand for new iPhone models is deteriorating," Goldman said in the note. "We note this could easily right itself given the bulk of demand comes in late December but we feel more prudent sell through forecasts are warranted due to the timing and magnitude of this warning.Apple began the month by reporting iPhone shipments that missed Wall Street expectations for the quarter.
 
Yes, but how is their profit margin per phone? Is that still going up. Increasing profits on flat sales is still growth. And the price of iphones sure isn't falling these days.
 
I am sure Apple will still manage to keep profit margins on phones high, but sales wise I don't see a bright future for Apple - for phones anyhow. My boss just got a Xiaomi device and if you look around at the competition, unless you are dead set on iOS, there are just so many other superior options for a lot less $$$.
 
Yes, but how is their profit margin per phone? Is that still going up. Increasing profits on flat sales is still growth. And the price of iphones sure isn't falling these days.

To investors who want dividends..then yes. To investors who want year on year revenue growth...then no.
 
I’m kind of hoping they’ll get a kick to the groin financially so they’ll wake up.

Yeah... keep hoping. They are living in the profit dream world. They will never wake up. Charge more for less. That's "Courage".
 
Aye there be less whales, me hearties, 'tis true.

We just be needin' bigger harpoons lads!

The whale's what's left be full o' precious oil!
 
News flash, every essential thing that you can do on a $1000 phone you can do on a $30 phone.
 
At least in the US, we are pretty much at 'Max Smartphone'. Everyone that wants one has one. There is no more horde of a couple hundred million people wanting to swap a flip phone for an iPhone. The main sales are replacements and first phones to kids. Probably why Apple stopped reporting unit sales. At a $1000+ per phone, one little economic hiccup and sales tank when folks decide that last year's $1000 phone still works just fine.
 
At least in the US, we are pretty much at 'Max Smartphone'. Everyone that wants one has one. There is no more horde of a couple hundred million people wanting to swap a flip phone for an iPhone. The main sales are replacements and first phones to kids. Probably why Apple stopped reporting unit sales. At a $1000+ per phone, one little economic hiccup and sales tank when folks decide that last year's $1000 phone still works just fine.

China is still a lesser growth market, but they're reaching saturation. That kind of leaves Africa.

Africa is a tough place to peddle $1500 luxury smart phones year after year after year after year after year. Africa isn't known for it's burgeoning consumer whale population.
 
Yes, but how is their profit margin per phone? Is that still going up. Increasing profits on flat sales is still growth. And the price of iphones sure isn't falling these days.

Except the increase in profits on each unit sold is not enough to make up for the drop in unit sales.

Apple has always had a problem competing on price. Looks this this problem might finally be hitting the iPhone sales.

I know people who feel they must have a iPhone, but are using a 3-4 year old phone (some with cracked screens) because the don't have the money to buy a new one.
Most of these people would be happy if they could be a new low end iPhone for $300-$400, but Apple doesn't care about that market.
 
News flash, every essential thing that you can do on a $1000 phone you can do on a $30 phone.

Only if you just use your phone to make phone calls.

I don't think the photos taken with your $30 would be worth keeping, and good luck streaming movies on that 2" screen.
 
As an Apple iPhone user I still have to say...
good.jpg


A thousand dollar phone. They've got to be out of their damn minds!!!

I'm still with my iPhone 7 Plus and I have no want to upgrade yet. I'll maybe get a new phone in a year or two but as long as my current iPhone 7 Plus still works and gets iOS updates I'm good.
 
Except the increase in profits on each unit sold is not enough to make up for the drop in unit sales.

Apple has always had a problem competing on price. Looks this this problem might finally be hitting the iPhone sales.

I know people who feel they must have a iPhone, but are using a 3-4 year old phone (some with cracked screens) because the don't have the money to buy a new one.
Most of these people would be happy if they could be a new low end iPhone for $300-$400, but Apple doesn't care about that market.

I wonder if the problem is really that Apple doesn't care about that market, I wonder if its that the manufacturing unit price of the iPhone is already so low that there really isn't any corners they can cut to offer a $400 version that won't step directly on the $1,000 versions toes.
 
eh, most of the market is in the tank. not just apple. need stability and new POTUS
 
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Literally this happens every quarter. Some analyst says they did some kind of channel check, and no one is buying iPhones anymore, so ignore the still high growth in earnings and panic sell the stock because they “only” made $62.9B this quarter.
 
Literally this happens every quarter. Some analyst says they did some kind of channel check, and no one is buying iPhones anymore, so ignore the still high growth in earnings and panic sell the stock because they “only” made $62.9B this quarter.

Typical market overreaction/manipulation. If the stock price goes low enough I might have to buy some.
 
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