“Apple Inc is expected to report its first year-over-year decline in iPhone unit sales when it reports second-quarter earnings after the market close on Tuesday,” Jennifer Booton reports for MarketWatch.
“Several analysts have lowered iPhone estimates in recent weeks, citing weak outlooks from Apple suppliers such as Jabil Circuit Inc. and Qualcomm Inc. and checks within Apple’s supply chain that indicate weak iPhone builds,” Booton reports. “Analysts on average are expecting Apple to report iPhone unit sales of 50 million for its most recent quarter, which would mark a decline from 61 million in the year-earlier period.”
“Compounding these issues are signs people are upgrading their phones less frequently than they used to, a slowdown in demand in China, and expectations that the new iPhone 5SE and Apple Watch are selling below expectations,” Booton reports. “Despite the concerns, however, the average rating on the stock among a poll of roughly 40 analysts surveyed by FactSet is the equivalent to buy.”
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MacDailyNews Take: This quarter is the toughest compare with the pent-up and therefore outsized iPhone 6/Plus unit sales of last year. Everyone in-the-know expects there to be a decline.