Ming-Chi Kuo, a tech analyst with a decent record for accuracy, predicts Apple will sell more iPhones in 2019 than many other analysts are anticipating.
To be clear, Kuo isn’t predicting a banner year for iPhone sales. Just not a terrible one.
Apple CEO Tim Cook has repeatedly said the company would rather make the best smartphone than the cheapest.
Yet, Apple’s budget model iPhone XR sold more in the U.S. during the fiscal quarter that ended in December than the iPhone XS and XS Max combined, according to new research.
The Chinese phone market cratered in the final quarter of 2018, but iPhone sales in the country did even worse.
This poor showing is primarily a result of the high prices Apple charges for its handsets, according to an industry analyst.
A recent unconfirmed report indicated that Foxconn, who produces handsets for Apple, had laid off thousands of employees. But the company itself says it’s actually hiring 50,000 people, a sign that iPhone sales aren’t a weak as some fear.
Still, there are indications of a slowdown in Foxconn production, just not a dramatic one.
Slumping iPhone sales have caused Apple to rethink its hiring strategies for certain division.
During an employee meeting earlier this month, Tim Cook was asked if the company is about to go on a hiring freeze. Cook reportedly responded that a total hiring freeze wasn’t a solution, the company would reduce hiring in some areas.
Sales of iPhones seem to be weaker than in previous years, and the Chairman of the Federal Reserve has an explanation: a drop in consumer spending in China.
The implication is that the slowdown in iPhone sales isn’t a result of anything Apple has done.
The iPhone XR is Apple’s newest handset but more of its units are already in use than the iPhone XS which launched two months earlier. And the XR is on course to pass the XS Max in the near future.
That said, all three are still trailing the installed base of 2017 iOS models, especially the iPhone X.
Apple CEO Tim Cook warned investors today that weak iPhone sales could translate into revenue shortfalls in the billions of dollars.
Cook blames the expected revenue drop on fewer-than-expected iPhone upgrades and weakened demand in China.
The iPhone XR got off to a fairly strong start. In November, this just-launched model made up 30 percent of Apple’s U.S. sales, slightly higher than the iPhone X in Nov. 2017.
But the standout aspect of the XR’s launch is this new model drew in a higher percentage of Android fans than any Apple device in years.
2019 isn’t shaping up to be an good year for Apple. A survey of potential customers in the U.S. and in China found lower interest in iPhone than last year.
The iPhone turned in a “flat” third quarter while Chinese brands Huawei and Xiaomi droves sales in their home country to grow their shares of the global smartphone market.
The smartphone market grew by 1.4 percent to reach 389 units. Take Huawei and Xiaomi out of the equation, and global sales would have declined by 5.2 percent, according to the research firm Gartner, Inc.
In a change for Apple, its best-selling model isn’t its most expensive. A company VP says the iPhone XR has outsold the iPhone XS series since the cheaper device came out last month.
Perhaps this will allay recent nervousness about how well Apple’s latest device is selling.
Goldman Sachs has added its name to the list of financial institutions worried about stagnating iPhone sales.
“We are concerned that end demand for new iPhone models is deteriorating,” Goldman Sachs wrote in a new note to clients. The firm estimates that Apple will produce 6 percent fewer iPhones next year than it did in the year previous. However, the big investment banking company admits it could be jumping the gun.
Respected Apple analyst Ming-Chi Kuo just slashed his estimates for the number of iPhone XR units that will sell over the next year. That’s a real turnaround, as Kuo had previously been bullish on Apple’s latest handset.
And he’s not the only analyst expressing concerns about sales of the iPhone XR. But it’s also possible this model is just following a pattern first laid down by the iPhone X.
The three Asian companies that assemble the iPhone XR have reportedly reduced production. Apple is ordering fewer units because sales of this smartphone haven’t lived up to expectations.
However, the source for this information isn’t the most reliable.
Apple just posted its Q4 2018 earnings report and, per usual, it was another record-breaking quarter for the iPhone-maker.
Revenue and iPhone sales came in slightly higher than Wall Street’s expectations, while Services revenue hit an all-time high of $10 billion. Another record-breaking quarter looks like it’s on the horizon, too. Apple CEO Tim says the company is heading into the holiday season with its strongest lineup ever.
Respected analyst Ming-Chi Kuo thinks the iPhone XR is going to be a massive smash hit for Apple — and it seems everyone is being taken by surprise by how in-demand it will be.
In a recent note to investors, Kuo increased his estimate for fourth-quarter iPhone XR shipments by 10 percent. Instead of 33 million to 35 million iPhone XR units over the quarter, he now thinks Apple’s suppliers will ship out 36 million to 38 million units.
Foxconn is best known for assembling iPhones, so it’s watched as a sign of demand for Apple’s most important product. The Chinese company just reported its revenue increased 30 percent last month, an indication that there’s plenty of demand for the iPhone XS models that debuted in September.
This is just the latest hint that Apple’s latest are performing well.
Almost everyone who wants a smartphone already has one, so device makers depend on upgrades among current customers to make money. Fortunately for Apple, an analyst reports there’s a surge of interest in buying a newer model.
The rising desire to upgrade isn’t limited to iPhone users, but the analyst says Apple will benefit the most.
Three members of Apple’s executive team in India have departed, due to the company’s ongoing struggle to boost iPhones sales in the world’s fastest-growing major smartphone market.
The execs include Apple’s national sales and distribution chief, the head of its commercial channels and mid-market business, and the head of telecom carrier sales. Apple’s Indian sales team is now restructuring as a result.
There’s a lot of good news in Apple’s second earnings report of 2018 that should keep investors happy going into the next quarter.
Revenue during Q2 2018 hit an all-time high for a March quarter at $61.1 billion, thanks in large part to 52.2 million iPhones sold. Apple CEO Tim Cook says iPhone X sales are still killing it, too.
The iPhone 8 line may be Apple’s latest and greatest, but so far has not kept up with older, better-selling sibling, the iPhone 7.
Carrier store surveys conducted by KeyBanc Capital Markets suggests the iPhone 7 handsets are bucking history by outselling the iPhone 8 and 8 Plus. Several respondents claimed the iPhone 8 models were not enough of an upgrade, while others are waiting to compare the 8 to the iPhone X. The iPhone X will ship next month.
Apple will open an online store in India to start selling iPhones, which it may begin making locally within the next couple of week.
Selling iPhones it makes in India is Apple’s first big step in competing for market share in a country with rapidly growing smartphone sales.
Apple is reportedly cutting iPhone 7 and iPhone 7 Plus orders less than three months after their debut due to falling demand.
Momentum has fallen “significantly” in China and other markets, according to sources in Apple’s supply chain, and component makers are already shifting their focus to iPhone 8.
Apple can’t make enough iPhone 7 devices to satisfy demand from customers (and from Wall Street to make more money).
During Apple’s Q4 2016 earnings call today, Apple CEO Tim Cook and CFO Luca Maestri hinted that big things are in the pipeline that should put the company back on track to growth — and it all starts Thursday with the MacBook Pro.
Here’s what we learned from the Q4 earnings call: