Apple is not getting sufficient credit

Apple “suffers from paranoia that sales growth will end. It has become increasingly reliant on iPhones, which account for 63 per cent of revenues compared with 56 per cent a year ago,” The Financial Times reports.

“Ultimately, the size of the earth’s population is a constraint and the peak quarter for iPhone sales will eventually arrive, but Apple is not getting sufficient credit for delaying that date,” FT reports. “Chinese demand, the big investor concern, continues unabated. Around the world less than a third of iPhone users have the latest model, showing plenty of room for upgrades. Those upgrades are likely to become more regular and even more of an annuity as Apple switches customers to its new annual subscription scheme.”

Read more in the full article here.

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[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]

10 Comments

  1. What these analysts don’t realise is that the HealthKit capability on iPhone and Apple Watch will start to see population increase globally as various ailments are sorted out; result, more people living longer and able to buy more Apple inc. products. Self fulfilling virtuous circle!

  2. Yes, to many keep thinking were back in the early 90’s.
    Get over it because Apple is 1000 times stronger now and is focused on the leading edge future. Apple has so much to give still and will. The Anal-ists are only focused on looking for failure and they will make up excuses fantasy stories about how Apple is going to fail next. I am so over it with there petty excuses for dropping Apple stock price over the dumbest excuses with no evidence to back it up.

    1. Maybe they’re only thinking as far back as 2012-2013 when Apple’s share price completely tanked (regardless of the reasons, it did). That may have investors very wary of putting their money into Apple. I’m sure plenty of investors took big losses from that Apple fiasco. I’m not smart enough to know the real reasons why everyone is gun-shy of Apple but it is what it is. At least Apple’s stock didn’t tank this quarter and I’m very thankful for that.

      I knew Apple couldn’t compete with Amazon, Alphabet and Microsoft in earnings share gains, but this result isn’t terrible. I can only hope Apple makes some new magic product that can replace or complement the iPad in sales. If not, Apple stock is bound to fall yet again next quarter.

  3. OK, but why conflate the iPhone 6 and the iPhone 6S as the latest model, when only the iPhone 6S is the latest model and some people have upgraded from the iPhone 6 to the iPhone 6S ? Around the world, WAY less than a third of existing iPhone customers have the 6S. There is tremendous headroom for Apple to quintuple their iPhone sales over the next 10 years.

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