For Apple, one of the biggest problems it should solve now is how to improve the sales of the iPhone in the world. Seems there is a simple solution. The Cupertino-based company should reduce the prices in order to make it competitive to the Chinese models. But for ages, this company has been running another price policy. And now, it’s quite difficult for it to make changes.
Also Read: Apple Takes The Lead Of Sales In Us During Q1, Samsung Follows
Today, Yahoo quoted data from investment company Goldman Sachs. According to the report, Apple’s iPhone shipments at the end of 2019 will be lower than the 67 million predicted by the rest of Wall Street expects, and by then (end of this year) Apple shipments and average selling prices will both face a downturn.
’We believe consensus is assuming a steep recovery in China, with little change in demand trajectory for other [geographies],’ Analyst Rod Hall told clients in a note. ‘We note that iPhone shipments in the U.S. and Japan cycled up in CY18 [calendar year 2018], with U.S. shipments growing 8% year over year in CY18.’
At the same time, he added,’ A better consumer environment for the most part of 2018 combined with compelling products later in the year helped drive iPhone growth in these regions. For CY19, however, we note that U.S. consumer sentiment is down year over year and an end to subsidies in Japan could create volatility.’
For the Chinese market, Apple is not sure to keep the iPhone hot. Hall thinks it is too early to assume a recovery on units in China to pre-2018 levels given increasing local brand traction and ongoing consumer weakness that may suggest a ‘new normal’ level of demand for this region.
It is estimated that by December 2019, iPhone sales will be 61 million units in a single season, which is 8% lower than FactSet’s forecast sales. In addition, the average iPhone price in the fourth quarter of 2019 to be $806, which is 4% higher than the market consensus.