Analyst: Apple may be too dependent on the iPhone

“Apple Inc. is scheduled to release its next earnings report in the second half of January, and of course holiday sales are going to be the big story in that report,” Michelle Jones writes for ValueWalk. “The quarter will be the first full quarter of sales for the iPhone 6 and iPhone 6 Plus, so investors and analysts will be looking closely at the number of iPhone units Apple reports.”

“In a report dated Dec. 30, 2014, BGC analyst Colin Gillis advises investors to look behind the December quarter earnings results coming next month,” Jones writes. “For example, he notes that smartphone growth is slowing down dramatically, with the smartphone market turning into the phone market.”

“As smartphone growth decelerates, the BGC analyst also points out that Apple is very dependent on the iPhone, as he estimates that more than 65% of Apple’s December revenue is from iPhone sales. Additionally, he notes that almost other handset maker has struggled because of problem adapting to the changing tastes of consumers and also the highly competitive landscape,” Jones writes. “Being overly dependent on the iPhone could pose a big problem for Apple going forward.”

Read more in the full article here.

MacDailyNews Take: Pfft.

[Thanks to MacDailyNews Readers “Fred Mertz” and “Chris M.” for the heads up.]

39 Comments

    1. The interesting thing that anal-ysts don’t acknowledge is that Apple is planning for their product line 5-10 years out.

      They are imagining, experimenting, developing & prototyping all sorts of possibilities in their labs with probably the best market analysis in the business to judge what has a good chance of success.

      I don’t see Apple missing out on the “next big thing.”

    2. ValueWalk???!!! Really??!! I stopped even looking at Google Finance for news because of articles by “services” like ValueWalk, InsiderMonkey, and PotentialTrader. These third-world analysts have no idea what they are talking about. Their writing would fail a freshman english class. Their analysis is facile and simply wrong. They churn out FUD every day that’s aimed at Apple, and Google picks it up and tries to spread it as widely as possible. Please, MDN, ignore these asshats.

        1. Sometimes it is necessary and beneficial to refute the FUD. Other times, it may be best just to ignore it.

          Airing and refuting this sort of run-of-the-mill BS on this forum is probably a waste of time. The people that read this forum likely already know that it is BS. In the end, it often just serves as fodder to rile up the trolls around here. Still, anything that gains page clicks, eh?

    3. Every other handset maker is struggling because they are losing the competition with Apple. Even if smartphone market growth is slowing, Apple is taking customers from Samsung, other Android users, and Windows users. Apple can easily grow just by taking customers from other manufacturers.

  1. In other news, Corning is overly dependent on glass sales, Ford is overly dependent on automobile sales, and Starbucks is waaaaaay too dependent on coffee.
    I think Colin Gillis expected Apple selling grocery or coffee. (Sarcasm).
    Happy New Year ****2015**** to MDN and Apple’s team as well as Apple’s shareholders.

  2. Not just the iPhone, but all the other products they make! if Apple were to ever stop making or being able to sell those devices, they would be in real trouble! For that reason, I think you all should sell your stock. Preferably to me. Because of my analysis, the stock is virtually worthless, but I’ll give you 10 bucks a share. OK, 20, but that’s just because you visit MDN.

  3. Sure, Apple should diversify their product lineup, introducing more models of existing products to cover the spectrum of consumer income, and expanding into new markets with less fragile supply chains, like home appliances, HVAC, aviation, medical technology and mattresses. Then, assured of Apple’s insulation against the vagaries of a fickle marketplace, this writer, and conventional investors, would be able to sleep better,.

      1. Sure and Apple ought to buy Tempur-pedic, that’s what I sleep on. Their mattresses are therapeutic, ties in with their health initiatives. They also have a luxury mark, which fits with Apple’s fashion and quality image. Their memory foam, used by astronauts under high thrust conditions, also conforms with the space-age theme nutured by Apple. Heck, bring in Elon Musk and his SpaceX rockets, and Bob’s your uncle.

  4. WALLSTREET ANALYSEDOSIS – A newly emergent mentally incapacitating disease believed to have originated among a sub-human specifies known as Financial Analysts living in the concrete jungles of Wall Street.

  5. Truth is, even if Apple stopped selling phones tomorrow they’d still be a massively successful company selling portable and desktop computers. The fact that the iPhone has been such a stellar success (and will continue to be) is testament to Apple’s vision and brilliance. Oh and Let’s not forget there’s the “small” matter of Apple watch on the horizon to become overly dependent on.

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