Slyck Chatbox - And More

Wall Street analyst downgrades Apple, says there's one big problem with the iPhone X

What's happening in the world of technology related to hardware. Please submit stories for this forum here.
Forum rules

Wall Street analyst downgrades Apple, says there's one big problem with the iPhone X

Postby MrFredPFL » Wed Jan 31, 2018 4:34 pm

Story :

On Monday, BMO Capital Markets downgraded Apple to "market perform," while also lowering its price target and estimates for the company's future.

"There has been much in the press about order cuts for iPhone X, and we believe a weaker mix in Q1 will push estimates lower for March and beyond," Tim Long, an analyst at BMO said in a note to clients. "Following 10 years where [iPhone] average selling prices have generally moved higher, we believe prices will plateau as with the rest of the industry."

The iPhone X seems to have one big problem: its price. According to Long, the $1,000 starting price of the new phone is a big reason for the weaker demand for the phone. There were still lines at the phone's release, and it was hard to get for a while, but Apple recently instructed its suppliers to cut their iPhone X production targets in half, due to lower than anticipated demand.

The high price of the phone also represents what Long thinks is the end of the rope for phone prices. Only about 12% of phones sold globally are priced above $600, which limits the market for high-priced phones like the iPhone X. Long thinks about 30% of all iPhones sold in 2018 will be priced above $900. For the current quarter, Long cut his iPhone unit estimate by 8 million to 55 million.

Posts: 15782
Joined: Wed Aug 17, 2005 4:48 pm

Return to Tech/Hardware News

Who is online

Users browsing this forum: No registered users and 2 guests

© 2001-2008