“All eyes will be on iPhone sales as Apple reports earnings later on Wednesday,” Ina Fried reports for Re/code.
“The flagship mobile device accounts for more than half of Apple’s revenue, but analysts have expressed both near-term and longer-term concerns that iPhone demand could slow amid steep competition from Android devices and a shift by consumers to more moderately priced smartphones,” Fried reports. “‘Based on our April surveys, we believe iPhone sales have slowed following the launch of the Galaxy S5 combined with global consumers delaying iPhone purchases until a new larger screen iPhone launches later this year,’ Canaccord Genuity analyst Michael Walkley said in a recent report.”
“Sanford C. Bernstein analyst Toni Sacconaghi said he sees three other issues for iPhone demand including uncertainty over sales through China Mobile, longer replacement cycles in the U.S. and Apple’s decision to sell lower-price iPhone 4 models in certain emerging markets, such as Brazil, India and Indonesia,” Fried reports. “Collectively, Sacconaghi said those factors ‘point to more downside that upside risk to revenues.'”
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