“The iPhone X is so popular that it just might wind up hurting Apple down the road,” Thomas Franck writes for CNBC. “It has been so successful that more and more iPhone users are upgrading early, eating into demand for future generations, according to New Street Research.”
“The vacuum in sales will be so great that investors should sell the stock, analyst Pierre Ferragu said in a note Monday,” Franck writes. “‘We expect a material disappointment in 2019,’ Ferragu said. ‘The iPhone X has been very successful and well received by consumers. It has been so successful, that we think it has brought forward demand.'”
“iPhone users upgrading early ‘will drive an ‘air pocket,’ and the introduction of a lower-price premium OLED phone won’t be enough to make up for the shortfall,’ the analyst added,” Franck writes. “New Street expects iPhone revenues in 2019 will be 10 percent below the Wall Street consensus. For his part, Ferragu believes that Apple’s 2019 and 2020 earnings per share will be 9 percent and 6 percent below the average analysts’ projections, respectively. Shares of Apple fell 0.8 percent on Monday. New Research’s price target of $165 represents roughly 25 percent downside from Friday’s close at $217.58.”
Read more in the full article here.
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[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]