Apple stock will drop because sales of its new iPhones later this year will fall below expectations, according to Nomura Instinet analyst Jeffrey Kvaal.
Nomura Instinet analyst Jeffrey Kvaal reaffirmed his Neutral rating for Apple shares on Thursday, predicting iPhone sales may disappoint during the quarter ending in December.
“We believe many investors are looking ahead to the 2020 5G iPhone launches,” he wrote. “[But] we caution that consensus [fiscal first quarter] iPhone estimates may be optimistic and that the shape of the 5G cycle remains uncertain.”
The analyst predicts the new iPhone releases this Fall won’t improve demand, because there aren’t significant improvements other than the camera
MacDailyNews Take: Apple remains an “uninspired investment” and investors should brace for disappointing iPhone sales and profit in two weeks, Nomura Instinet analyst Jeffrey Kvaal warned clients back in April 2018, ahead of Apple’s Q218 earnings report.
A mere two weeks later, on May 1, 2018, Apple reported the company’s best second quarter in history, with strong revenue growth in iPhone.
We can see your track record, Jeff, and it sucks.
• Nomura Instinet analyst Jeffrey Kvaal: Prepare for an Apple earnings miss — April 18, 2018
• Apple beats Street with best Q2 ever – May 1, 2018
I thank you MDN for your clarity and insight re: these morons. I think the proper spelling might be “anal-cysts?”
Well, financial genius. Just to humor us, why don’t you project for us how many fewer units a Chinese made widget will sell in 2020 if it costs 5, 10, or 15% more next year?
Okay, now how well does it sell when the directly competing product is made in South Korea, and it costs 10% less than the Chinese-made widget with simpilar performance and specifications?
If you think Apple is immune to trade wars, you are not playing with a full deck. If Americans aren’t price sensitive, then explain why Walmart is the biggest brick & mortar retailer, and most vehicles on the road are old rusty pickups instead of shiny new Cadillacs?
We’ll wait for your math.
OK, citizen imposter, you can’t do math. I’ll help you.
All the niche gadgets that Apple has trotted out since the iPhone have yet to fill in the void that occurs when iPhone sales slump. All the subscription services that Apple keeps pushing are tied to hardware sales. When hardware sales fall, company profit evaporates. 2019 is projected to be a soft year, with about a 2.5% decline in smartphone sales compared to 2018.
https://ceoworld.biz/2019/08/11/revealed-global-sales-of-smartphones-to-end-users-and-market-projections-2007-to-2020/
In late 2020, global smartphone sales are projected to recover somewhat as leading edge customers adopt 5G handsets. But Apple has no 5G handsets.
Then we have to ask about how the Trump tariffs will hit Apple. Almost all Apple hardware is made in China, though no doubt Apple will do whatever it has to to find the loophole to get around it. Probably boxing up hardware in Taiwan before shipping to the US. Meanwhile Samsung will incur no costs or delays as it continues to ship its Android devices — you know, Trump’s personal choice of cell phone — from South Korea.
Okay, there are 3 major hits to AAPL price going into 2020. All you have to do is tell us why you think Apple will make more money next year to compensate for all this. Please share with us your brilliant insights.
“All the subscription services that Apple keeps pushing are tied to hardware sales”
Wrong banana breath. Subscription sales are tied to hardware installed base (currently about 1 Billion), not new hardware sales.
Apple does NOT have to sell an ever increasing number of hardware units for Subscriptions to be wildly sucessful.
Who, in your esteemed imagination has a proprietary base coming anywhere near that of Apple’s? None, nada, zip, zilch.
It is the expectation (realized) of Apple hardware/software users that tthe quality is first rate, performs above expectations, is easy to use and secure. The brand loyalty this generates is #1 in every product category Apple competes in.
Some handset manufacturers are touting their 5G capable products, but there is no 5G for them to operate on, and won’t be for the majority of the world until nearly 2022. 5G is not a growth driver for anybody at this point. A great example of a feature being meaningless is 3G (are you old enough to remember this?). Apple’s first iPhone did not support 3G and that did not hurt sales of the most expensive smartphone on the planet. It wan’t until 2 years later that 3G was widely available, and by then everyone had, or was about to, copy the iPhone. Nobody manfactures a smartphone today that does not look like the iPhone. None since then have introduced a feature that has changed user buying preferences.
Take your fake data/opinion and regurgitate it somewhere that the readership (Android) is eager to believe it.
“OK, citizen imposter, you can’t do math. I’ll help you.
All the niche gadgets that Apple has trotted out since the iPhone have yet to fill in the void that occurs when iPhone sales slump. All the subscription services that Apple keeps pushing are tied to hardware sales. When hardware sales fall, company profit evaporates. 2019 is projected to be a soft year, with about a 2.5% decline in smartphone sales compared to 2018.
https://ceoworld.biz/2019/08/11/revealed-global-sales-of-smartphones-to-end-users-and-market-projections-2007-to-2020/”
This isn’t math, its supposition, and bad supposition at that.
Nomura is hugely influential in the Japanese market. I wonder why they have bug up their butt about Apple?
Yeah, wishful thinking is not considered proper market analysis technique.
A new Series 5 WATCH with a new faster S5 processor, titanium and ceramic case options will be a monster hit!