“Apple’s earnings for its fiscal second quarter (which I will refer to from here out as Q1 2016, as is my custom) were rocky,” Jan Dawson writes for Beyond Devices. “As Tim Cook said, it was a challenging quarter. There was bad news not just in iPhone, where Apple had already suggested there would be, but in other areas too.”
“It’s worth enumerating exactly what those sources of bad news are to understand what’s going on at Apple,” Dawson writes. “But there was also some good news in the earnings, which is particularly important when looking at the longer term.”
“What was notable about this down quarter in iPhone sales was that Tim Cook said the last six months were the highest ever for Android switching. That implies that what fell short during that period was upgrades. That, in turn, suggests that when this base of iPhone 6 buyers finally does upgrade in large numbers – likely between 2-3 years from their purchase – we could see another big bump in sales, an aftershock of sorts,” Dawson writes. “The biggest impact would hit in a roughly eighteen month period from this September through the following March, which provides more reason for optimism about longer term iPhone growth.”
Much more in the full article – recommended – here.
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